CEBU LANDMASTERS, INC. (CLI) has kept its credit rating by a local debt watcher for its outstanding P5-billion bonds issued in 2018.
In a statement on Monday, the Philippine Rating Services Corp. (PhilRatings) said it had maintained the PRS Aa credit rating for CLI’s corporate notes.
The PRS Aa rating is the second highest issue rating by PhilRatings for long-term issuances, which means that the bonds are of high quality and are subject to very lower credit risk.
The debt watcher said with this credit rating, CLI is expected to have a very strong capacity to meet its financial commitment.
The rating was also given a stable outlook, which means it is expected to hold for the next 12 months.
PhilRatings said it based its credit rating on the company’s sound management and strategy, sustained growth over the past years, good coverage of interest and current debt, and ability to form strategic partnerships.
It noted while the company faces significant competition from national players with bigger capital and landbank, CLI can form joint-venture partnerships that would leverage on its strength as a homegrown and Cebu-based developer.
CLI earlier reported a 41% increase in sales during the first half of 2020 to P7.43 billion. It has not released its second-quarter earnings yet, but its first-quarter attributable income slid 4% to P572.23 million.
CLI issued the P5-billion bonds a couple of years ago to support land acquisitions in Cebu, Dumaguete, Bacolod, Cagayan de Oro, Davao, Bohol and Iloilo. Some also went to the development of a 22-hectare township in Davao.
The company is planning to launch a total of 14 new projects this year, which will add P19.4-billion worth of projects to its inventory.
Shares in CLI at the stock exchange slid five centavos or 0.99% to P5 each on Monday. — Denise A. Valdez
