TRIS Rating Co., Ltd. has upgraded the company rating of Central Pattana PLC (CPN) and the rating of its senior debentures (CPN066A, CPN093A, CPN10DA) to "A" from "A-". The rating outlook has been changed to "stable" from "positive". The ratings reflect CPN's strengthen leading position in the Thai retail shopping center sector, its high-quality shopping center portfolio, recurring cash flow from contract-based rental and service income, and its successful track record in shopping center management. The ratings also take into consideration CPN's expansion plans for the next few years, and intense competition in the retail industry.
While the "stable" outlook reflects the company's ability to maintain its market position in the retail property industry by developing new projects and acquiring existing projects that have been re-branded to CPN. The company is expected to continue its conservative financial policy by maintaining its target net debt to equity ratio of less than one time.
TRIS Rating said that CPN's ten shopping centers averaged 94.9% occupancy in September 2004, underpinned by their good locations in attractive and high population growth areas. The company's redevelopment and expansion plans will require significant capital expenditures for the next few years. However, these plans will enable the company to maintain and improve its already strong market position. The redevelopment risk of Central World Plaza is partly mitigated by its prime location on the most popular shopping street, together with the company's successful record of developing acquired projects. - End
Central Pattana PLC (CPN) Company Rating: Upgraded to A from A- Issue Ratings: CPN066A: Bt1,000 million senior debentures due 2006 Upgraded to A from A- CPN093A: Bt1,000 million senior debentures due 2009 Upgraded to A from A- CPN10DA: Bt1,500 million senior debentures due 2010 Upgraded to A from A- Rating Outlook: Stable from Positive