TRIS Rating Affirms “LH’s” Company and Issue Ratings
TRIS Rating Co., Ltd. has affirmed the company rating of Land & Houses PLC (LH) at “A”. At the same time, TRIS Rating has affirmed the ratings of LH’s senior secured debentures and senior debentures at “A+” and “A”, respectively. The outlook remains “stable”.
The ratings reflect LH’s sustainable leadership position in the Thai residential property market, its proven record and well-recognized brand name in the market. The ratings also take into consideration an experienced management team, and the company’s solid financial position. However, these strengths are partially offset by slowing demand for residential property as a result of moderating consumer confidence, increasing interest rates, and rising construction costs.
The “stable” outlook reflects an expectation that LH will be able to maintain its leading position, product quality, and strong brand recognition in the property market. With cost efficiencies and a faster rate of construction, the company is expected to sustain its favorable profit margin, even in light of weak market conditions.