By The Nation
The downgrade reflects the listed developer’s continued and expected rise in financial leverage, the results of an aggressive investment plan, and the fact that sales of completed condominium units have been slower than expected, TRIS said.
The rating continues to reflect the good quality of the company’s hotel properties and its experience as a property developer.
It is constrained by high administrative expenses and an ongoing rise in leverage as several large real-estate projects are being developed at the same time.
The rating also takes into consideration the nature of the hotel industry, which is characterised by intense competition and high sensitivity to uncontrollable external factors, and the cyclicality of the property market, the ratings firm added.