Rating Release

Agusto & Co. hereby affirms the “A-” rating assigned to Wemabod Limited

The rating expires on 30 June  2024.

Agusto & Co. hereby affirms the “A-” rating assigned to Wemabod Limited (“Wemabod” or“the Company”). The rating reflects the relative stability in the Company’s overall financial condition on the back of its expanding property development and strong average occupancy rate of nearly 90% across its portfolio which have continued to support a healthy cash flow position. The rating further considers the Company’s diversified income stream and its joint venture project financing model that has helped to keep its leverage low. However, the rating is constrained by Wemabod’s concentrated ownership structure as well as concerns over the continuous decline in its profit margin amid intensifying cost pressures in building projects and facility management services that have characterised the business climate. Also, we consider the prolonged delays in obtaining building permits and the weakening consumer spending as potential downside risks to Wemabod’s future growth and expansion plans.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.