Cirtek raising P2 B from CP issuances

Published March 5, 2021, 12:48 PM

by James A. Loyola

Cirtek Holdings Philippines Corporation (CHPC) has been assigned an Issuer Credit Rating of PRS A (corp.) with a Stable Outlook by Philippine Rating Services Corporation (PhilRatings) in relation to its P2 billion commercial paper issuance.

This is the initial tranche from a proposed Shelf Registration of commercial papers of up to P6 billion.

PhilRatings said a company rated PRS A (corp.) has an above average capacity to meet its financial commitments relative to that of other Philippine corporates.

The company, however, is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates. 

A Stable Outlook means the rating is likely to be maintained or to remain unchanged in the next twelve months.

PhilRatings said the rating and outlook were assigned given the firm’s manageable liquidity and capitalization levels and the Cirtek Group’s established track record in the industry, supported by a strong and experienced management team that has navigated the Group through economic cycles, crises, and industry challenges.

It also took into considertation CHPC’s strong customer base of well-established and global companies, diversified in terms of region and industries as well as its improved profit margins despite lower revenues, attributable to the company’s cost management efforts.