TRIS Rating Co., Ltd. has affirmed the company rating of Seacon Development PLC (SEACON) at "BBB+" and has also affirmed the rating of SEACON's Bt550 million senior secured debentures (SCON061A) at "A-". The rating outlook remains "stable". The ratings reflect the company's recurring cash flow from contract-based rental and service income, its quality retail property, its healthy financial position, and the adequate collateral value of its shopping center. The debentureholders are adequately protected by a healthy loan to collateral value ratio of 12.2% as of March 2005, and the right to directly access the rental and service income from shopping center tenants in the event of default. However, the ratings also take into consideration the concentration risk of owning only one income-producing property, the illiquidity of the collateral, and intensified competition in the retail industry.
While the "stable" outlook reflects an expectation that SEACON will continue to maintain the operating performance of its Seacon Square Shopping and Entertainment Center. Its contract-based rental and service income will consistently provide a stable flow of cash to the company.
TRIS Rating said that Seacon Square Shopping and Entertainment Center had a gross area of 509,412 square meters (sq.m.), with 171,533 sq.m. of commercial area as of March 2005. The center is located in a good location on Srinakarin Road and has a strong, diversified tenant base including major anchors. SEACON also benefits from the high barrier to entry represented by the stricter planning regulations for new major retail developments. -- End
Seacon Development PLC (SEACON) Company Rating: Affirmed at "BBB+" Issue Rating: SCON061A: Bt550 million senior secured debentures due 2006 Affirmed at "A-" Rating Outlook: Stable
While the "stable" outlook reflects an expectation that SEACON will continue to maintain the operating performance of its Seacon Square Shopping and Entertainment Center. Its contract-based rental and service income will consistently provide a stable flow of cash to the company.
TRIS Rating said that Seacon Square Shopping and Entertainment Center had a gross area of 509,412 square meters (sq.m.), with 171,533 sq.m. of commercial area as of March 2005. The center is located in a good location on Srinakarin Road and has a strong, diversified tenant base including major anchors. SEACON also benefits from the high barrier to entry represented by the stricter planning regulations for new major retail developments. -- End
Seacon Development PLC (SEACON) Company Rating: Affirmed at "BBB+" Issue Rating: SCON061A: Bt550 million senior secured debentures due 2006 Affirmed at "A-" Rating Outlook: Stable