Bangkok--18 Oct--TRIS Rating TRIS Rating Co., Ltd. has affirmed the company rating of Noble Development PLC (NOBLE) at “BBB+” with “stable” outlook. The rating reflects the company’s well recognized brand in the residential property market, its product differentiation strategy and a healthy balance sheet. The rating also takes into consideration the company’s weak operating performance in recent year, which is the result of slowing demand in the property market. The uncertain political situation and declining consumer confidence remain rating concerns. The “stable” outlook reflects the expectation that NOBLE will be able to weather the current down cycle of the residential property market. With its condominium backlog and its discipline of requiring 25%-30% down payments, the company is expected to manage the construction and transfer of its condominiums as planned. TRIS Rating reported that NOBLE is a medium-sized property developer in Thailand. The company was established in 1991 and listed on the Stock Exchange of Thailand (SET) in 1996. The Thanakitamnuay family and related families continue to be the company’s major shareholders with a total of 14% stake. During 2005-2006, the company’s residential sales averaged Bt2,000 million, with 60% from single detached houses (SDH) and 40% from condominiums. Its average unit price was Bt8.2 million for SDH and Bt4.7 million for condominium. NOBLE’s competitive advantage stems from its well accepted brand as a modern property developer, providing unique and differentiated designs in its residential products. TRIS Rating said that during the first half of 2007, NOBLE generated Bt627 million in residential sales, 39% lower than the same period of last year. However, during the second quarter of 2007, sales improved to Bt413 million, from Bt214 million in the first quarter. Due to the current slowdown of the residential property and increasing operational costs, the company’s operating margin (before depreciation and amortization) has declined to 16% for the first half of 2007. Following the acquisition of Bt1,200 million of land in early 2007, the company’s total debt increased to Bt1,904 million as of June 2007. However, its debt to capitalization ratio remained healthy at 38.61% as of June 2007. The company’s liquidity was moderate as it had Bt1,197 million in debt-free, pre-built SDH projects on hand as of August 2007. Its sales performance for the remainder of 2007 is expected to improve, partly from the revenue recognition from its condominium backlog, which was Bt3,700 million as of August 2007. Political uncertainty has diminished consumer confidence and softened the housing market. Though inflationary pressures and interest rates are easing, demand for residential property is expected to remain soft in 2007-2008, said TRIS Rating.