Bangkok--26 Jun--Fitch Ratings Fitch Ratings has today affirmed Thailand’s MBK Public Company Limited’s (MBK) National Long-term rating at ‘A-(tha)’ (A minus(tha)) with a Stable Outlook and National Short-term rating at ‘F2(tha)’. At the same time, the agency has affirmed the ‘A-(tha)’ (A minus(tha)) rating of MBK’s THB3.0bn senior unsecured debentures, due 2010. The ratings reflect MBK’s strong market position in the shopping plaza and hotel businesses in Bangkok, the relatively strong and stable cash flow generated from its core shopping centre property, the MBK Center, and expected earnings growth from new investments. The MBK Center’s key competitive advantages are its prime location, established brand, strong traffic flows, the diversified tenant base and the varied target-customer profiles, which help generate stable cash flow streams (accounting for around two-thirds of the group’s EBITDAR); at the same time, these factors have offset the impact of intensifying competition in the shopping plaza business. MBK’s consolidated EBITDAR has stayed in the range of THB1.3bn to THB1.5bn during 2005-2007. Nonetheless, MBK’s credit concerns include a worsening economic environment which could impact the retail and travel businesses, as well as its high level of non-core investments, particularly the equity investment in its finance holding affiliate, Thanachart Capital Public Company Limited, which accounted for about 10% of MBK’s consolidated total assets at end-March 2008. MBK reported a substantial increase in EBITDAR (net of income from rental deposits and advance payment) of 19% yoy to THB1.5bn in 9M08 (end-March 2008), driven by stronger performance of hotel and rice businesses. However, MBK’s adjusted net debt to annualised EBITDAR ratio increased to 2.8x at end-March 2008 from 1.5x at FYE2007 (end-June 2007), due to its debt financing of the MBK Center’s landlease renewal. MBK expects its financial leverage to gradually improve to the range of 2.5x over the next three years given expected stronger cash flow generation and a moderate investment plan. Meanwhile, MBK’s financial flexibility and liquidity management remain sufficient, supported by a cash available of THB243 million at end-March 2008 and the stable cash flow generation from the MBK Center. The Stable Outlook reflects the expectation that MBK’s strong market position in its core businesses and its solid cash flow generation should help maintain its financial flexibility over the medium term. A significantly stronger operating cash flows and cash flow stream from asset sales which result in an improvement in financial leverage below 2.0x on a sustained basis could positively affect the ratings, while any substantially debt-funded investments which result in high leverage of over 3.0x on a sustained basis or decline in occupancy and rates of the MBK Center and its main hotel, could negatively affect the ratings. Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(tha)’ for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Contacts: Wasant Polcharoen, Lertchai Kochareonrattanakul, Vincent Milton, Bangkok, +662 655 4755