Tris Rating has assigned a BBB- credit rating to the new tranche of unsubordinated, unsecured debentures of North East Rubber Public Company Limited, or NER, with a value of up to 1.8 billion baht and a maturity of up to 4 years, to be used as working capital. The new tranche will replace the rating on the previous debentures of up to 1 billion baht. Tris Rating has also affirmed the company rating and the rating on NER's existing unsubordinated, unsecured debentures at BBB- with a Stable outlook. For the first six months of 2026, NER reported total revenue of 14.4 billion baht, down 11.9% year on year, and EBITDA of 1.1 billion baht, representing an EBITDA margin of 7.4%. Profit was pressured by raw material costs that rose by around 30-40% since the start of the year, while selling prices were raised only with a delay in line with contractual terms. On leverage, the financial debt to EBITDA ratio rose to 5.1 times, and the company has postponed its plan to invest in a new factory worth 2 billion baht in order to await clarity on trade tariff measures and the impact of El Niño. As of June 2026, NER had total financial debt of 10.9 billion baht and 4.7 billion baht of debt with priority in repayment, or 43% of total debt, while the net debt to equity ratio stood at 1.1 times, below the financial covenant limit of no more than 2.5 times.
North East Rubbers Public Company LimitedTris assigned a BBB- rating to NER's new 1.8bn baht debentures while noting H1 2026 revenue fell 11.9% y/y, EBITDA margin of 7.4%, and debt/EBITDA rising to 5.1x.
