By The Nation
Tris also affirmed the ratings on Anan's unsecured subordinated perpetual debentures (hybrid debentures) at “BB+”. At the same time, Tris Rating assigns the rating to Anan’s proposed issue of up to Bt1,000 million in unsecured subordinated perpetual debentures at “BB+”. The proceeds from the new hybrid debentures will be used for business operation.
The ratings on Anan and its debentures reflect the company’s strong market position in the condominium segment, larger backlog, and expected higher contribution of project management service income and share profit from its investment in joint venture (JV) projects.
The ratings also take into consideration Anan's high level of financial leverage from aggressive business expansion and concern over the impact from the introduction of new loan-to-value (LTV) rules by the Bank of Thailand (BOT) which may affect demand for condominiums.
The ratings continue to reflect the cyclicality and competitive environment in the residential property development business and the lingering high household debt which could impact housing demand in the short to medium term.