Phoenix maintains issuer rating for P10-billion commercial papers

PHOENIX Petroleum Philippines, Inc. preserved its issuer credit rating over its three-year P10-billion commercial papers program.

In a stock exchange disclosure on Tuesday, the listed independent oil company said it received a PRS Aa minus (corp.) rating with a “stable” outlook from the Philippine Ratings Services Corp. (PhilRatings).

The rating signifies the company’s “strong” capacity to meet its financial obligations compared with other local firms, while the assigned outlook means the rating is unlikely to change within a year.

PhilRatings based its rating and outlook on the company’s retail and market leadership growth, especially among independent oil players; its “significant” growth potential considering its entry into business ventures; “improving” sales volume; and “declining coverage ratios in relation to debt servicing.” The pandemic’s impact on the firm’s operations was also considered.

Phoenix has finalized the term for the fourth tranche of its P10-billion commercial papers program.

From July 21 to 23, the company is offering as much as P2 billion worth of debt papers with an oversubscription option of up to P1.5 billion.

The 360-day promissory notes with a 5% annual discount rate are projected to yield P3.28 billion in proceeds, which the company will use to procure imported fuels and lubricants.

The company will list the debt papers at the Philippine Dealing & Exchange Corp. on July 29.

It has tapped PNB Capital and Investment Corp. as sole issue manager and underwriter of the papers and Philippine National Bank Trust Banking Group as its trustee.

Phoenix’s commercial papers program started in 2018. It issued P7 billion in the first series on Dec. 27, 2018; P3.5 billion in the second tranche on Aug. 5, 2019; and P3 billion in the previous series on Dec. 11, 2019.

Shares in Phoenix went down by 0.35% to close at P11.36 apiece on Tuesday. — Adam J. Ang