Aboitiz Equity Ventures Inc. (AEV) is planning to raise up to P12 billion from a proposed bond issue—the fourth and final tranche under its existing shelf registration as well as the initial tranche of its new three-year shelf registration program amounting to P30 billion.
Philippine Rating Services Corporation (PhilRatings) said it has assigned its highest issue credit rating of PRS Aaa, with a Stable Outlook, to AEV’s planned bond issue which has a base amount of up to P8.00 billion, with an oversubscription option of up to P4.00 billion.
The ratings company also maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for AEV’s total outstanding bonds worth P27.62 billion.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A Stable Outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
In the assignment of the rating, PhilRatings said it considered AEV’s experienced shareholders and management, with a strong track record; and the Company’s continuously growing and highly diversified asset and investment portfolio.
It also factored in AEV’s improved profitability following the impact of the COVID-19 pandemic and its manageable leverage position and liquidity.
PhilRatings said AEV continued to grow its investment portfolio, with core businesses that include power, food, financial services, real estate and infrastructure.
While some of its businesses were affected by the economic slowdown, its businesses proved resilient with most back to their pre-pandemic levels.
It added that AEV does not have substantial investments in businesses that may take a longer time to recover given the pandemic such as the tourism, hospitality and transportation sectors.