LPN Development earns ‘A-’ ratings
TRIS Rating has affirmed a company rating of “A-” for LPN Development Plc.
It assigned the same rating to LPN’s proposed issue of up to Bt1 billion in senior unsecured debentures.
Proceeds from the debentures will be used to repay short-term debts and for working capital.
The ratings reflect the company’s proven track record, with a well-accepted brand name in the middle- to low-priced condominium segments, cost competitiveness derived from efficient construction management, and conservative financial policy.
The ratings also take into consideration the company’s relatively concentrated product portfolio in terms of product types and price ranges, the cyclicality and competitive environment in the residential property development business, the impact from the introduction of new loan-to-value rules by the Bank of Thailand, and the lingering high household debt which could impact housing demand in the short to medium term.