By JAMES A. LOYOLA
Housing developer 8990 Holdings, Inc. is raising ₱2.4 billion from a planned securitization of its low-cost Residential Contract-to-Sell (CTS) Receivables.
The planned issuance consists of one senior class of certificates (Tranche A Certificates) and subordinated certificates (Tranche B Certificates).
The Tranche A Certificates are worth ₱1.8 billion, with a legal tenor of 10 years. On the other hand, the Tranche B Certificates are worth around ₱600 million, and will be amortized after all Tranche A Certificates have been fully settled.
Philippine Rating Services Corporation (PhilRatings) assigned Conditional Issue Credit Ratings of PRS Aa plus for the Tranche A Certificates, and PRS A for the Tranche B Certificates.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.
On the other hand, obligations rated PRS A have favorable investment attributes and are considered as upper-medium grade obligations.
Although obligations rated PRS A are somewhat susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its financial commitments of the obligation is still strong.
PhilRatings said the ratings are considered conditional until the executed documentation for the transaction has been submitted to PhilRatings for review.