Phinma Corporation is planning a bond issuance of P2 billion, with an oversubscription option of up to P1 billion, to raise a maximum of P3 billion.
Philippine Rating Services Corporation (PhilRatings) said it has assigned an Issue Credit Rating of PRS Aa, with a Stable Outlook for the bonds.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitments on the obligation is very strong.
In assigning the rating, PhilRatings said it considered Phinma’s highly experienced management team, with a long track record of navigating economic crises since the 1950s.
It also noted the company’s established main business lines of construction materials and education, though the company is relatively small in size and scale compared to other PRS-rated conglomerates.
Also a factor is Phinma’s consistent growth in revenues over the last five years, dragged down by non-operating items resulting in a volatile bottom line; and its relatively conservative capital structure.
PhilRatings also considered the increasing economic and market uncertainty caused by the recent surge in COVID-19 cases and the relatively slow pace of vaccination in the Philippines.
Phinma Corp. currently has investments mainly in firms producing and distributing construction materials, such as cement, a business it has recently re-entered, and steel, as well as low-cost educational institutions.
It likewise has interests in the development and management of housing and hotels, among others.