Thai Rating and Information Services (TRIS) has affirmed the rating on Land & Houses (LH) and LH’s existing senior unsecured debentures at “A+”, according to a press release on Friday.
At the same time, TRIS Rating assigns the rating on LH’s proposed issue of up to Bt6,000 million in senior unsecured debentures at “A+”. The proceeds from the new debentures will be used to refinance LH’s debentures maturing in April 2019.
The company said the ratings reflect LH’s leading market position in the residential property development industry, strong brand position in several product types, and moderate level of financial leverage.
The ratings also take into account the company’s financial flexibility deriving from recurring income assets and marketable securities and the cyclicality and competitive environment in the residential property development business.
LH ranks in the top three of listed property developers in Thailand in terms of revenue base.
The company said its operating revenue was Bt35,265 million in 2017 and Bt34,686 million in 2018.
The company had 73 existing projects as of December 2018, with total remaining project value worth Bt63,000 million. Landed property projects comprised around 70 per cent of total unsold value while the condominium projects made up the rest.
The total backlog was worth around Bt9,800 million and is expected to be transferred during 2019-2021.