AGRICULTURAL firm SL Agritech Corp. obtained a PRS Aa (corp.) rating with a stable outlook from local credit rating agency Philippine Rating Services Corp. (PhilRatings).
PhilRatings said in a recent statement that the issued rating was for SL Agritech’s commercial paper issuance of up to P4 billion.
Proceeds from the commercial paper issuance will be used to pay SL Agritech’s short-term obligations and to buy rice and seed inventories from the company’s contract growers, the credit rating agency said.
“A company rated PRS Aa (corp.) differs from the highest-rated corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates,” PhilRatings said.
According to PhilRatings, a company that has a stable outlook means that the rating is “likely to be maintained or to remain unchanged in the next 12 months.”
The credit rating agency added that the rating was assigned to SL Agritech after examining the company’s competitive market position locally, potential growth in the medium to long run, profitability, and the impact of the coronavirus disease 2019 (COVID-19) pandemic.
Based on its website, SL Agritech has business interests in the production of commercial hybrid rice seeds and milled rice production. It is also involved in hybrid rice seed research and development. — Revin Mikhael D. Ochave
