JERA Trading assigned an A rating by R&I
JERA Trading (“JERAT”) was today assigned an A credit rating with stable outlook by the Japanese rating agency R&I.
JERAT was established in April 2017 and is a joint venture between ultimately JERA Co. Inc., (JERA) who own two thirds and EDF Trading (EDFT) who own one third. In July 2018, JERA and EDFT announced the signing of binding agreements to form an LNG optimisation and trading joint venture where JERA’s and EDFT’s LNG optimisation and trading activities will be merged into JERAT (to be renamed JERA Global Markets). This agreement is expected to complete in early 2019.
R&I cites this rating as a reflection of the creditworthiness of the entire JERA Group, which is also rated A with stable outlook recognising that JERAT’s fuel procurement function is “extremely important for JERA’s business operations”.
This rating also confirms the company’s solid financial profile and operating performance backed by its shareholders, JERA and EDFT.
JERAT operates within a strong internal control and compliance framework and this, coupled with its team of seasoned professionals, in-depth knowledge of the market and its significant customer base, enable the company to provide a first class procurement, supply and logistics service to JERA, the EDF Group and third party customers. The integration of LNG activities in 2019 will enable JERAT to significantly develop its global services offering providing sustainable and strengthened future cash flows for its shareholders.
“This strong and stable rating confirms the strength of our business model and balance sheet. We look forward to developing our commercial activities globally in coal and, in 2019, in LNG”, said Ronan Lory, Managing Director, JERA Trading.
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JERA Trading (JERAT) is a joint venture between JERA Co., Inc (66.67% through JERA Trading International Pte. Ltd. equity) and EDF Trading (33.33% equity). It manages the coal and freight portfolios for JERA and third parties worldwide which give it the ability to source, supply, transport, store and blend coal. JERAT has sales of approximately 60 million tonnes of coal per annum. It is also a leading coal and freight derivatives trader. JERAT has around 200 employees operating in Singapore, London, Amsterdam and Baltimore.