RAM Ratings affirms Edra Power's AAA/Stable/P1 ratings 

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 mos