MANILA, Philippines — Local debt watcher Philippine Rating Services Corp. (PhilRatings) has given Gokongwei-owned Robinsons Land Corp. (RLC) the highest credit rating for its proposed bond issuance of up to P10 billion, with an oversubscription option of up to P5 billion.
PhilRatings gave RLC’s bonds a credit rating of PRS Aaa, with a Stable Outlook.
The latest issuance marks the first tranche of the company’s shelf-registered debt securities program in the aggregate principal amount of P30 billion.
Obligations rated PRS Aaa are of the highest quality, with minimal credit risk.
“The obligator’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook is an indication that the rating is likely to remain unchanged in the next 12 months,” PhilRatings said.
The assigned issue credit rating takes into account RLC’s strong competitive position, high liquidity, sound capitalization, and its experienced management team.
RLC will use the proceeds from the bond issue for general funding requirements.
RLC president and CEO Frederick Go said this is a recognition of the company’s strong fundamentals and financial stability.
“It is a vote of confidence in the company’s ability to create long-term shareholder value,” Go said.
To-date, RLC has an extensive portfolio of properties encompassing different asset classes.
These include 53 lifestyle centers; 28 prime office developments anchored on the resilient BPO sector; five work.able centers in the growing flexible workspace segment; 24 diverse, multi-branded hotel properties consisting of upscale deluxe hotels, mid-market boutique city and resort hotels, essential service value hotels, and luxury resorts; seven industrial facilities capitalizing on abundant opportunities in the logistics sector; over 100 residential properties; and 20 mixed-use developments, including three landmark destination estates that espouse the live-work-play-Inspire lifestyle.
RLC maintained its strong cash position despite a challenging operating environment caused by the global pandemic. Operating cashflow, which is always at a surplus, amply covered short-term debt.
Total assets remained robust at P223 billion as of the end of March.
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The article was originally published in Phil Star Global and written by Iris Gonzales.