Robinsons Bank gets double-A rating

Published March 8, 2021, 4:55 PM

by James A. Loyola

Robinsons Bank Corporation, a member of the Gokongwei group of companies, has received a PRS Aa (corp.) issuer credit rating in relation to its outstanding Fixed-Rate bond issue of P5.0 billion due in November 2021.

Philippine Rating Services Corporation (PhilRatings) said it has also assigned an issue credit rating of PRS Aa for the bank’s outstanding P5.0 billion bonds due on August 13, 2021.

The ratings firm said an issuer credit rating of PRS Aa (corp.) differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.

Meanwhile, bonds rated PRS Aaare considered as high quality and subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong. 

The ratings have a Stable Outlook which means they are likely to remain unchanged in the next 12 months.

PhilRatings said “The ratings take into consideration the Bank’s well-experienced management; strong profitability in the recent period, amid pandemic-related challenges; and more than satisfactory funding profile.

It also considered Robinsons Bank’s sound capitalization that provides ample cushion against pandemic-related risks, at least in the short-term; and the expectations of parent company support, if needed, given the Bank’s status as the banking arm of a strong and diversified conglomerate.

Based on data from Bangko Sentral ng Pilipinas (BSP), Robinsons Bank was the eighteenth largest bank with assets of P134.8 billion, as of June 30, 2020.

Robinsons Bank is the financial services arm of the JG Summit Group, owned by JG Summit Capital Services Corporation (60 percent) and Robinsons Retail Holdings, Inc. (RRHI, 40 percent).

The diversity, market and financial strength of the JG Summit Group present Robinsons Bank with numerous opportunities, with the substantial size of the Group providing a captured market for the bank’s various products and services.

In 2019, the Bank successfully issued P10.0 billion bond in two tranches. The initial tranche of P5.0 billion was issued in August 2019, while the second tranche of another P5.0 billion was issued in November 2019. The issuance allowed the Bank to diversify funding sources, optimize deployment of funds, and support liquidity management.(