RPT-Fitch Affirms Krungthep Land's Guaranteed Notes at 'AA+(tha)'
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Aug 15 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings (Thailand) Limited has affirmed Krungthep Land Public Company Limited's (KLAND) guaranteed debentures as follows:
THB500m debentures due 2013 affirmed at 'AA+(tha)'; Outlook Stable
THB250m debentures due 2014 affirmed at 'AA+(tha)'; Outlook Stable
THB250m debentures due 2015 affirmed at 'AA+(tha)'; Outlook Stable
Key Rating Drivers
Guarantee from KTB: The ratings of the debentures are based solely on the irrevocable and unconditional guarantee of the principal and interest payment of the debentures by Krung Thai Bank Public Company Limited (KTB, AA+(tha)/ Stable). The guarantee also includes other expenses relating to the notes of up to THB50m. As a result, the debentures are rated at the same level as the guarantor, KTB.
Founded in 1984, KLAND initially focused on developing medium- to high-end single detached house projects. KLAND later expanded into condominiums by entering into a joint venture with Frasers (Thailand) Pte Ltd. (a 100%-owned unit of Frasers Centrepoint Limited (FCL), one of Singapore's largest residential developers) to develop its first condominium project.
The company has also diversified into the development of townhouses. FCL became KLAND's major shareholder via Frasers (Thailand) Pte Ltd. in 2005 and currently holds 40% of KLAND's shares. Property Perfect Public Company Limited holds 20% of KLAND's shares while the remaining 40% is mainly owned by Thai entrepreneurs. Rating Sensitivities
Positive: Future developments that may, individually or collectively, lead to positive rating
Positive rating action on KTB
Negative: Future developments that may, individually or collectively, lead to negative rating
Negative rating action on KTB
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