Fitch rates Property Perfect debt BBB+(tha)

Fitch Ratings said it assigned an expected national long-term rating of BBB+(tha) to Property Perfect plc's (PF) 520 million in Thai baht three-year senior secured debentures with partial guarantee provided by Siam City Bank plc, which is rated A-(tha) with stable view.

The outlook is stable.

The debentures will be secured by freehold land appraised at 884 million in Thai baht, representing a value-to-loan ratio of 170%, Fitch said. That ratio must be maintained at no less than 160% under the debentures covenant, the agency said.

The rating reflects the company's strong brand recognition and long track record in Bangkok's prime residential market, especially in the large-scale development of single detached houses, Fitch said.

The rating is constrained by the highly cyclical nature of the property industry, the agency said.

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