CPN has invested in properties under Central Festival Phuket (“CFP”) Project with Central Department Store Co., Ltd. (“CDS”) where CPN partially sub-leases the land on which the project lies for 25 rai, 36.8 sq.wah. from CDS for 41 years, leases part of CFP building and takes ownership transfer of system works with net leasable area of 44,347 sq.m. according to the resolutions of CPN’s 2015 Annual General Meeting of Shareholders.
TRIS Rating affirms the company rating and the existing senior unsecured debenture ratings of Central Pattana PLC. (CPN) at “AA-”. At the same time, TRIS Rating assigns the rating of “AA-” to CPN’s new senior unsecured debentures, worth Baht 1,000 million (CPN221A). The proceeds from the new debentures will be used for business expansion. The “AA-” ratings reflect the company’s leading position in the retail property development industry in Thailand, proven record of managing high-quality shopping centers, reliable cash flows from contract-based rental and service income, and conservative financial policy. The ratings also take into consideration the large amount of capital expenditures needed for business expansion during 2015-2017.
The “stable” outlook reflects the expectation that CPN will sustain the strong operating performance of its shopping centers. Despite pursuing its growth strategy, the company is expected to maintain its financial discipline. The net interest-bearing debt to equity ratio should be kept lower than 1 times.