TRIS affirms AP (Thailand) ratings, assigns ‘A-‘ to new debentures
TRIS Rating has affirmed the company rating of AP (Thailand) and the ratings of its outstanding senior unsecured debentures at “A-”.
At the same time, the company has assigned a rating of “A-” to AP’s proposed issue of up to Bt3 billion in senior unsecured debentures, which will be due for redemption within four years.
The listed residential developer plans to use the proceeds from the new debentures to repay some of its existing loans and fund business expansion.
The ratings reflect AP’s satisfactory business profile, driven by its proven track record in the residential property development industry, diverse range of products, and moderate backlog, which secures a portion of its future revenues, TRIS said on Monday.
These strengths are partially offset by the cyclical nature of the sector, AP’s moderate use of financial leverage, and concerns over the relatively high level of household debt nationwide.
