LISTED D&L Industries, Inc. said it has retained its highest credit rating for its P5-billion fixed-rate bonds.
The fixed-rate bonds maintained a PRS Aaa rating with stable outlook from the Philippine Rating Services Corp. (PhilRatings), D&L Industries said in a stock exchange disclosure on Monday.
Issued in September 2021 to partly fund the company’s Batangas plant, D&L’s bond issuance had a principal amount of P3 billion, with an oversubscription option of up to P2 billion, and a tenure of three to five years.
PRS Aaa is the highest rating issued by PhilRatings and is given to obligations with minimal credit risk, while a stable outlook is assigned when a rating is likely to be maintained in the next 12 months.
The rating and outlook were given based on D&L’s market position in the industries in which it operates; diversification of products offered and markets served; and specialty products that shield the company from competition and ensure continued demand from customers.
PhilRatings also cited the company’s relatively stable margins amid higher costs and expenses, including incremental costs on the Batangas expansion facility, as well as conservative debt management and adequate cash flow generation.
D&L is expected to settle its P3 billion fixed-rate bonds upon maturity on Sept. 14.
“Given its conservative leverage position, as well as its profit and cash flow performance, the company is seen to be able to comfortably service its maturing obligations,” it said.
The company’s Batangas plant started commercial operations in July 2023.
“As the economy continues to recover from the pandemic, D&L is positive that it is more capable to withstand adverse environments with the expertise it has learned through its years of operations. The company strives to enhance its capabilities in order to maintain a strong market position,” it said.
D&L is engaged in the production of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.
On Monday, D&L shares fell by 0.65% or four centavos to P6.10 apiece. — Revin Mikhael D. Ochave
