The ratings reflect AP’s strong market position, driven by its growing revenues and stable profitability, its sizeable backlog which secures a portion of its future revenues, and its balanced products portfolio.

These strengths are partially offset by AP’s moderate use of financial leverage and the cyclical and competitive nature of the residential property development industry.

The impact from the new loan-to-value (LTV) lending rules set by the Bank of Thailand (BOT) and a persistently high level of household debt nationwide could affect the demand for housing over the next few years.

TRIS Rating expects AP to maintain its strong market position in the next five years. The size of AP’s revenue base has ranked it fourth among the property developers listed on the Stock Exchange of Thailand (SET) over the past five years.

AP’s revenues have grown from Bt20.3 billion in 2016 to Bt27.7 billion in 2018. Its operating profit margin has been maintained at around 14-16 per cent while its pretax return on permanent capital stood at around 10-12 per cent.

The growth in revenue was driven mainly by a 35-per cent increase in its landed property segment. The operating margin (operating income before depreciation and amortisation as a percentage of revenue) was 13.8 per cent in 2018, decreasing from 15.5-17.0 per cent during 2015-2017.

This ratio dropped because the company accelerated the sales of finished units in the stock of condominium projects with a lower gross profit margin. The gross profit margin of the condominium segment in 2018 was only 29 per cent, declining from 35-37 per cent in the past three years. However, due to the higher share profit from its joint ventures (JV), AP’s pretax return on permanent capital improved to 11.2 per cent in 2018, from 10.5 per cent in 2017.

In TRIS Rating’s view, AP benefits from economies of scale, strong bargaining power with contractors and material suppliers, improving brand recognition, and accessibility to the capital market.

The debenture issue will be up to Bt20 billion and have a greenshoe option of Bt10 billion. The notes will have a tenor of 10 years.

The Basel III Tier 2 notes are rated one notch below the anchor rating, TMB’s National Long-Term Rating of ‘AA-(tha)’, to reflect the notes’ subordinated status and higher loss-severity risks relative to senior unsecured instruments.

Key terms of the notes include a non-viability trigger (defined as emergency capital assistance from the central bank or any other empowered government agency), with partial rather than mandatory full write-down features.

The Tier 2 notes are senior to any Additional Tier 1 securities with loss-absorption features. If written down, the Tier 2 notes rank pari passu with TMB’s other Tier 2 loss-absorbing instruments that have write-down features.

The National Long-Term Rating is used as the anchor rating because it reflects the bank’s standalone financial strength.

Fitch believes that TMB’s standalone credit profile best indicates its non-performance risk (that is, becoming non-viable). Fitch has not applied additional notching to the notes, as they have no going-concern loss-absorption features.

TMB’s standalone financial strength, as reflected in the Viability Rating (VR), takes into account the bank’s moderate domestic franchise as Thailand’s seventh-largest bank by deposits, with a market share of about 5 per cent.

TMB’s financials have improved steadily, narrowing gaps with larger peers, particularly in asset quality. Fitch expects TMB’s financials to remain stable, despite increasing risk appetite in the SME and home mortgage segments.

Takorn Tantasith added that some broadcasters had already informed the NBTC they would return their combined three licences.

Friday is the last day the NBTC allows the broadcasters to declare their intention to return their licences.

In a related matter, the board of directors meeting of News Network Corporation Public Company Limited on May 9 resolved to ask shareholder to approve rectification for the return of the digital TV licence in the category of news programming held by its subsidiary, Spring News Television Co Ltd.

Shareholders will consider the matter at an extraordinary general meeting on July 5.

Spring News currently operates Spring News Channel 19.

The return of the licences is in line with relief measure offered by the National Council for Peace and Order last month to ease the financial burdens of the telecom and digital TV broadcast sectors.

The measures offer digital TV broadcasters the option of returning their licences to the broadcast watchdog. Those that do will be compensated by the NBTC.

The proportion of international revenue surpassed domestic revenue and reached 55 per cent of the total air transport revenue.

Vietjet operated 33,646 flights in the first quarter of 2019 on its flight network, covering destinations in Vietnam and Japan, Singapore, South Korea, Thailand, Myanmar, Malaysia, Cambodia, China, Dubai and Doha.

Vietjet’s core revenue from air transport in this year’s first quarter reached over Bt13.7 billion, an increase of nearly 28 per cent, of which ancillary revenue reached Bt3.6 billion, up 45 per cent year on year.

The proportion of ancillary revenue (having a high-profit margin) in air transport revenue continued to increase from 23.1 per cent in QI/2018 to 25.4 per cent at the end of 2018 and reach to 26.3 per cent at the end of QI/2019.

As a result of exceeding its expectations, for 2018 Vietjet paid a dividend at the rate of 55 per cent, 5 per cent higher than the rate of 50 per cent approved at last year’s shareholders’ meeting.

With good business results, regional and international flight network expansion plan as well as cost management, operation quality management abilities, Vietjet expects to keep positive growth in the three key targets reported to the shareholders’ meeting.

Outgoing Marc Pelletier, who led Schneider Electric Thailand over the past five years, has now been promoted to West Asia and Africa.

Tanapong brings over 28 years of experience in sales and marketing, having worked with global technology and innovation companies such as Microsoft, IBM and Lenovo.

Tanapong was a director at Microsoft Thailand Ltd.

The company said in a press release on Thursday that the move will create new business opportunities in Amata Smart City in Thailand and other Amata cities in Vietnam, Myanmar and Laos PDR.

This strategic joint collaboration reflects the intent of both parties to support Thailand4.0 and strengthen Thailand software industry, the company said.

“Amata’s Smart City vision is to provide a world class infrastructure for foreign and local manufacturing, Research & Development companies and leading innovative companies in Thailand and other promising countries in Mekong region.

“Amata is delighted to help the local Thai software industry to extend their market in Thailand and also in other CLMVT countries which Amata has presence”, said Lena Ng, Chief Investment Officer of Amata Corporation PCL.

“With more Foreign Direct Investment (FDI) flowing into the Asean region especially in both the physical and digital world, I believe there are tremendous opportunities for Amata Smart City to partner with leading innovative global and local Thai companies.

“Thailand is the Chair of Asean this year and Amata is honoured to showcase both Global partner and Innovative Local Thai technologies. This collaboration with ATSI will be a positive model of our contribution to grooming local Thai promising companies”, added Lena Ng.

Tinnakorn Laoraovirot, President of the Association of Thai Software Industry (ATSI), said that this Memorandum of Understanding (MOU) was agreed by both parties to develop Thai software industry to achieve the goal with sustainable growth, the Amata-ATSI Digital Innovation Platform Project will aim to achieve the goal in driving Digital Thailand 4.0 and support the Amata Smart City Project by promoting relevant Thai software business to support Amata Cities’ clients with the ATSI Ecosystem, consisting of Industrial & Factory, Education & E-Learning, Tourism & Hospitality, Retail & Wholesale, Transportation & Logistics, Backbone Business & General Software Solution.

This cooperation focuses to accelerate the people to be transformed into the digital society, jointly drive Digital Thailand 4.0, expand Thai software business to the markets of neighbouring countries including Myanmar, Vietnam and Laos, with the collaboration platform in the form of Virtual Team.

Yuwadee Saekoay, Secretary General of the Association of Thai Software Industry (ATSI), gave more information that under this Memorandum of Understanding (MOU), the digital learning opportunities will be created to generate more Digital Workforce through the use of Digital Learning Tools for Amata’s clients.

In addition, the initiative will develop and enhance the personnel capabilities of Amata’s clients to have skills both in their professional operations and other skills in working and living in accordance with to the designated time frame, effective from 1 May 2019 to 30 April 2021.