FILINVEST Development Corp. (FDC) has been given the top credit rating by a local debt watcher for its planned P15-billion bond issuance.
After the Gotianun-led holding firm announced last week its intention to apply for P8-billion retail bonds with an oversubscription option of up to P7 billion, Philippine Rating Services Corp. (PhilRatings) said Tuesday it is giving the proposed issuance a credit rating of “PRS Aaa.”
PRS Aaa is the highest credit rating that PhilRatings gives to borrowers, which means a company is expected to have an “extremely strong” capacity to meet its financial commitments.
PhilRatings likewise gave its credit rating to FDC a stable outlook, which means the rating is expected to stay in the next 12 months.
The debt watcher said it took into consideration FDC’s stable revenue streams, the strong track record of its subsidiaries, its conservative and professional management and the “well-positioned businesses” of the company in real estate and banking.
“Being in the business for over four decades, FDC and its subsidiaries have survived the country’s economic downturns, financial crises and political turmoil… The company’s chosen technical partners in power, hospitality and other business ventures also have the expertise and track record in their respective industries,” PhilRatings said.
It noted the company’s earnings remained “steady” over the years, with consolidated revenues keeping an uptrend since 2016. FDC’s total revenues grew 17% to P55.26 billion in the first nine months of 2019 to reach an attributable net income growth of 16% to P8.98 billion.
PhilRatings added the higher score of group 6 for the Philippines’ banking system by S&P’s revised Banking Industry Country Risk Assessment gives it confidence that FDC’s banking unit will perform well this year. It also said the projected growth of the real estate sector in the country by Jones Lang LaSalle, Inc. bodes well for FDC’s real estate business.
“PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to FDC and may change the ratings at any time, should circumstances warrant a change,” it said.
FDC controls Filinvest Land, Inc.; East West Banking Corp.; Filinvest Hospitality Corp.; FDC Utilities, Inc. and Pacific Sugar Holdings Corp., among others.
Shares in the company at the stock exchange slipped 0.46% to P13.10 apiece on Tuesday. — Denise A. Valdez