OREANDA-NEWS. Fitch Ratings (Thailand) Limited has affirmed Krungthep Land Public Company Limited's (KLAND) guaranteed debentures of THB250m due October 2015 at 'AA+(tha)'. The Outlook is Stable.

KEY RATING DRIVERS

Guarantee from KTB: The rating of the debentures is based solely on the irrevocable and unconditional guarantee of the principal and interest payment of the debentures by Krung Thai Bank Public Company Limited (KTB, AA+(tha)/Stable). The guarantee also includes other expenses relating to the notes of up to THB50m. As a result, the debentures are rated at the same level as the guarantor, KTB.

Founded in 1984, KLAND is a residential property developer focusing on medium- to high- end single detached house projects. KLAND was fully acquired in December 2014 by Golden Land Property Development Public Company Limited, one of Thailand's listed developers with a diversified property portfolio of residential and commercial projects.

KLAND's business focuses on low-rise developments after it disposed of its entire stake in the luxury condominium project "The Pano" in 2014. The company generated revenue of about THB2bn a year from low-rise projects in 2013-2014.

RATING SENSITIVITIES

Positive: Future developments that may, individually or collectively, lead to positive rating action include:

Positive rating action on KTB

Negative: Future developments that may, individually or collectively, lead to negative rating action include:

Negative rating action on KTB.