VISTA LAND & Lifescapes, Inc. (VLL) retained its triple A issuer rating from local debt watcher Credit Rating Investor’s Services Philippines, Inc. (CRISP).
In a statement issued Tuesday, the Villar-led property developer said CRISP reaffirmed its AAA rating, the highest on its credit rating scale.
The rating also carries a stable outlook, indicating that it is unlikely to change in the next 12 months.
CRISP took into account VLL’s leadership in the low cost and affordable housing market given its strategic landbanking initiatives. The debt watcher further cited the company’s management team and operating model, which allows it to replicate large-scale housing community projects.
“Its scalable, standardized processes and technologies allow the Company to efficiently build and deliver high-quality houses and lot packages,” according to CRISP, as quoted by VLL.
VLL Chairman Manuel B. Villar, Jr. welcomed the rating’s affirmation, saying this proves that “we have put in place a company with a strong management team and a business model that can withstand challenges such as the recent rise of inflation.”
The company also noted that its balance sheet remains strong with a net debt to equity of 0.71x as of Sept. 30.
The reaffirmation of VLL’s credit rating comes amid its plans to sell up to P10 billion worth of fixed-rate retail bonds, consisting of an aggregate amount of P5 billion with an oversubscription option of up to P5 billion. The issuance will be taken from its remaining P15-billion shelf-registered bonds.
VLL tapped China Bank Capital Corp. as the offering’s issue manager.
Proceeds of the offering will be used to finance VLL’s expansion program. The company has committed to spend up to P50 billion in capital expenditures to support its housing, shopping mall, and office businesses this year.
VLL launched P38 billion worth of projects in the first nine months of 2018, most of which are housing projects in the low and affordable segment outside Metro Manila.
The listed firm registered a 16% increase in attributable profit to P8.09 billion in the first nine months of 2018, driven by a 16% uptick in revenues to P31.05 billion.
Shares in VLL dipped 2.04% or 11 centavos to close at P5.29 each at the stock exchange on Tuesday. — Arra B. Francia