Philippine Rating Services Corporation (PhilRatings) has assigned an Issuer Credit Rating of PRS A plus (corp.), with a Stable Outlook, to Asia Link Finance Corporation (Asialink). An Issuer Credit Rating is a measure of the general creditworthiness of a company over a one-year period. A company rated ‘PRS A’ has an above average capacity to meet its financial commitments relative to that of other Philippine corporates. The company, however, is somewhat susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates. The “plus” further qualifies the assigned rating. A Stable Outlook, on the other hand, means the rating is likely to remain unchanged in the next twelve months. In assigning the rating and its outlook, PhilRatings said it took into account Asialink’s experienced shareholders and management team and the significant improvement in the Company’s profitability, on the back of aggressive loan book expansion. Also considered is the beginning recovery, albeit still faced with challenges, of the target market served by the Company. Asialink is reportedly one of the fastest growing financing companies in the Philippines, with 104 branches nationwide Incorporated in 1997, Asialink offers unsecured and secured credit facilities that cater to the financial needs of businesses, particularly small and medium enterprises (SMEs) and individuals, without engaging in quasi-banking (QB) functions. Moving forward, the Company plans to also grow its funding sources through diversification, tapping the capital markets via a possible short-term debt issuance. Initially engaged in the business of appliance group financing (AGP), Robert B. Jordan, Jr. Ruben B. Lugtu II, and Wilfredo T. Anastacio established the founding company, Asia Link Credit Corporation (Asialink Credit), during the Asian financial crisis of 1997. Asialink’s management is supported by a team of experienced professionals with technical expertise in and understanding of the industry. The presence of experienced professionals is seen to be supportive of sustained and stable operations. PhilRatings notes, however, that decision making remains with the Lugtu Family, with the family having an 85 percent ownership stake in Asialink. The balance of 15 percent is owned by Jordan, Jr. Loans remained as the biggest asset component, with a share of 91.9 percent as of end-2022. Given the growth in the Company’s loan book, the Company’s profitability improved in 2022. Revenues increased by 43.1 percent, from P2.2 billion in 2021 to P3.1 billion in 2022, as recovery in the Company’s monthly volumes was observed. Meanwhile, net income jumped by 66.3 percent, from P519.7 million in 2021 to P864.1 million in 2022. PhilRatings notes that such was the highest bottom line recorded by the Company since 2016.