The rating downgrade reflects the fact that CI has a smaller scale of business than its rated peers, as well as the company’s “volatile and declining operating performance and its increasing leverage”, TRIS said.

The rating continues to reflect its brand recognition in the middle- to high-end condominium and hotel segments. It also reflects recurring rental income the company earns from the commercial office space it owns, and the dividends received from investments in Sri Panwa Hospitality Real Estate Investment Trust (SRIPANWA) and Bangkok Commercial Property Fund (BKKCP).

Lastly, TRIS said the rating takes into consideration the cyclical and highly competitive nature of the real estate development industry.