The upgrade reflects the firm’s improvement in profitability and debt serviceability, driven by its house brand products and efficient cost controls, TRIS said.

The rating also reflects Siam Global House’s proven record in the home-improvement retailing industry in Thailand, expansion of warehouse-style stores to provincial areas, and the ongoing shift in customer preference from traditional home improvement to modern trade retailers.

These strengths are constrained by a long cash conversion cycle, intense competition, and a customer base which is highly sensitive to changes in agricultural product prices, TRIS added.