The rating reflects the listed company’s acceptable track record in the middle- to low-income segment of the residential property market, its improving revenue base, and relatively high profitability.

The company has moved to higher-priced products to expand its project portfolio since 2015 and the success of its expansion therefore remains to be seen, the ratings firm said on Monday.

The supportive factors are partly offset by Sena’s rapid business expansion, which may raise financial leverage and lower cash-flow protection over the next three years.

The rating also takes into consideration the cyclicality and competitive environment in the residential property development business and the concern over the high level of household debt nationwide, which impacts the affordability of home-buyers, especially in the middle to low-income segment, TRIS explained.