TRIS Rating Assigns “BBB+/Stable” Company and Issue Ratings for “AP”
TRIS Rating Co., Ltd. has assigned the company rating of Asian Property Development PLC (AP) and the rating of AP’s proposed up to Bt3,000 million senior debentures at “BBB+” with “stable” rating outlook. The ratings reflect the company’s track record in the residential property development, its accepted brand in the downtown townhouse market, and its ability to acquire prime land for development.
The ratings also take into consideration a cyclical downturn in the property development market, slowing demand for residential property due to the uncertain political situation, and declining consumer confidence.
The “stable” outlook reflects the expectation that AP will be able to manage the construction of its condominium projects and transfer in accordance with plans. The company is expected to maintain its conservative financial policy to mitigate increasing business risks since the portfolio is shifting more towards condominium development.