Fraser Property Holdings debentures rated 'AA-'
TRIS Rating has affirmed the ratings on the outstanding guaranteed debentures of Frasers Property Holdings (Thailand) (FPHT or Issuer) at “AA-” with a “stable” outlook.
The debentures are issued under FPHT’s Bt25 billion debenture program and fully guaranteed by Frasers Property Ltd. (FPL or Guarantor). FPHT is a wholly-owned subsidiary of FPL.
The issue ratings reflect the creditworthiness of the guarantor (rated “AA-/Stable” by TRIS Rating).
Under the terms of the guarantee agreement, FPL will provide an unconditional and irrevocable guarantee of all amounts due under the terms of the debentures, including the principal, plus any accrued interest, and other related expenses.
The guaranteed debentures will rank equally with all other unsecured and unsubordinated obligations of FPL. The guarantee agreement is governed by the laws of Singapore.
The ratings reflect FPL’s exceptional business profile, underpinned by its solid track record in the real estate business, well-diversified portfolio of quality assets in terms of geography and asset types, sizeable recurring income base, and active management of capital.
These strengths are partially offset by its high leverage resulting from a series of acquisitions made in recent years as FPL aggressively grew its portfolio of recurring income assets.
