TRIS Rating said today that the political violence, which has led to widespread chaos and fire incidents in Bangkok on 19 May 2010, creates negative impacts on the ratings of some of its customers. The customer who will have the most serious impact is Central Pattana PLC (CPN) as its shopping center, the CentralWorld, was severely damaged by the fire. The CentralWorld is the largest shopping center in CPN’s portfolio.
Dr. Santi Kiranand, President of TRIS Rating Co., Ltd., however, said that the credit rating of CPN will not be immediately impacted by this fire incident due to its diversified portfolio of 15 shopping centers, its strong financial position, and a full support from the Central Group.
Dr. Santi said, CPN’s remaining shopping centers and office buildings located in Bangkok and upcountry continue to provide strong revenue of approximately Bt7,000-Bt8,000 million per annum to the company, while CPN’s liquidity remains sufficiently strong. However, the full financial impact from the fire incident to CPN’s credit worthiness will be closely monitored.
CPN is the leading shopping center owner in Thailand. As of March 2010, it had 15 shopping plazas located in Bangkok and major cities of Thailand. Its current company rating assigned by TRIS Rating is “A+” with “stable” outlook. -- End
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