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RAM Ratings affirms Edra Power’s AAA/Stable/P1 ratings
Published on 17 Dec 2025.
RAM Ratings has affirmed Edra Power Holdings Sdn Bhd’s (Edra Power or the Group) AAA/Stable/P1 corporate credit ratings, premised on its stable, concession-based power generation business, underpinned by long-term power purchase agreements (PPAs) with government-linked offtakers.
Edra Power’s company-level financial profile continues to be anchored by dividends from its Malaysian subsidiaries, where it is the country’s second-largest independent power producer. The ratings also incorporate an uplift, reflecting our view of the ‘high’ likelihood of extraordinary financial support from China General Nuclear Power Corporation (CGNPC) – the Group’s 63% shareholder.
As CGNPC’s largest foreign subsidiary by installed capacity and pre-tax profit, Edra Power is viewed highly strategic to its parent, serving as a key investment vehicle for CGNPC’s footprint in Southeast Asia, South Asia and the Middle East, despite limited new projects in recent years. The Group’s senior management team is now predominantly composed of CGNPC representatives, underscoring strong alignment in strategic direction and operational oversight. The requirement for shareholder approval on major decisions and growth initiatives further evidences this relationship.
The expiry of the PPA for Teluk Gong Power Station 2 in September this year reduced the Group’s operating plants to seven, with total equity capacity declining to 4.3 GW (from 5.0 GW at end-2024). Two additional PPAs are scheduled to expire in 2026. Apart from a 300 MWac solar project awarded under the Large Scale Solar 5 programme, progress on new project development has been slow, partly reflecting management’s prudent risk appetite and strict return thresholds. The Group is also actively pursuing PPA extensions for three plants to maintain stable capacity.
Edra Power’s profit performance – primarily assessed at the company-level, given the ring-fenced nature of most subsidiary concession projects – is driven by dividend receipts from Malaysian entities. This contributed to higher revenue in FY Dec 2024 and 8M FY Dec 2025. Pre-tax profit stayed subdued at RM26.4 mil in fiscal 2024 (fiscal 2023: RM12.2 mil; fiscal 2022: RM617.7 mil) due to sizeable non-cash impairments from revised asset valuations. In 8M FY Dec 2025, pre-tax profit improved to RM623.5 mil. Visibility on potential full-year 2025 impairments is limited, the quantum is likely to be lower, given already reduced or moderate asset valuations for entities with PPAs nearing expiry.
Edra Power’s credit metrics were broadly in line with our projection, with company-level gearing at 0.04 times as at end-August 2025 (projected: 0.08 times), supported by lower-than-expected borrowings. Despite increases in debt for new investments, based on RAM’s sensitised projections, gearing and operating cashflow net debt coverage are envisaged to stay solid in FY Dec 2028 at around 0.20 times and 0.40 times, respectively.
Analytical contacts
Amy Lo
(603) 2708 8289
amy@ram.com.my
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my
Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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