Bangkok--29 Apr--TRIS Rating TRIS Rating Co., Ltd. has assigned a “A-” rating to the proposed up to Bt500 million senior debentures of TICON Industrial Connection PLC (TICON). At the same time, TRIS Rating has affirmed the company rating of TICON at “A” and has affirmed the ratings of TICON’s existing debentures at “A-”. The rating outlook remains “stable”. The ratings reflect TICON’s leading position in the ready-built factory industry, its predictable rental income, and strong operating performance. The ratings also take into consideration the improved investment climate in Thailand following the current government policies to stimulate domestic consumption and promote foreign direct investment. The “stable” outlook is based on the expectation that TICON will be able to maintain its leadership position in its niche market of rental factories. Its recurring income from ready-built factories is expected to generate greater cushion to the company during the development period of its logistics parks. TRIS Rating reported that TICON is the leading provider of ready-built factories in Thailand. At the end of March 2008, the company’s portfolio comprised 123 leased factories located in 11 industrial estates, and 11 leased warehouses located in two logistics parks. The leased properties cover an aggregate area of 384,080 square meters (sq.m.). As of April 2008, TICON’s major shareholders were Rojana Industrial Park PLC (Rojana) (21.9%); TICON’s management (9.4%); City Realty Group (5.9%); and Thailand Equity Fund (6.1%). The company’s competitive advantage stems from its long track record of providing ready-built factories, its ability to provide standard factories at competitive prices, cost competitiveness from economies of scale, and a strategy of managing its own factory construction. According to CB Richard Ellis (CBRE), based on leased space, TICON and TICON Property Fund (TFUND) had a combined market share of 68% as of December 2007. This share is far higher than peer companies such as Thai Factory Development PLC (TFD) and its property fund (11%), Hemaraj Land and Development PLC (Hemaraj) (11%), Pinthong Industrial Park Co., Ltd. (Pinthong) (7%), and Amata Corporation PLC (Amata) (3%). TRIS Rating said, TICON’s performance has been strong. Rental income from leased factories and warehouses has continuously grown, reaching Bt706 million in 2007 from Bt427 million in 2003 and Bt591 million in 2005. TICON consistently generated Bt2,058 million of revenue from selling its factory to the TFUND in late 2007. Its debt to capitalization ratio simultaneously improved to 44% as of December 2007, despite growing development cost for warehouse for rent. In 2008, Thailand’s economy is expected to improve due in part to the newly elected government, its new fiscal stimulus packages and policies to promote investment. However, short-term political uncertainty of the current government remains a rating concern, said TRIS Rating. TICON Industrial Connection PLC (TICON) Company Rating: Affirmed at A Issue Ratings: TCON095A: Bt500 million senior debentures due 2009 Affirmed at A- TCON095B: Bt1,000 million senior debentures due 2009 Affirmed at A- TCON109A: Bt500 million senior debentures due 2010 Affirmed at A- Up to Bt500 million senior debentures due 2011 A- Rating Outlook: Stable