TRIS Rating has assigned a rating of BBB- to the new senior unsecured debentures of North East Rubber Public Company Limited (NER), with a total issue size not exceeding 1 billion baht and a tenor of no more than 4 years. The proceeds will be used as working capital. The company's corporate and existing debenture ratings are affirmed at BBB- with a stable outlook. Debentures guaranteed by CGIF remain rated AAA. The company reported revenue of 14.4 billion baht in the first half of 2026, down 11.9%, due to higher raw material costs of 30-40% which pressured margins, but expects a recovery in the second half. Debt to EBITDA rose to 5.1 times, higher than expected, but is expected to decline below 5 times in the second half. The company has postponed its new plant investment plan worth 2 billion baht pending clarity on trade tariffs and the impact of El Niño.
North East Rubbers Public Company LimitedRevenue down 11.9% and debt-to-EBITDA rose to 5.1 times, pressuring margins and credit metrics.
