DoubleDragon gets top rating for P25-billion bonds

DoubleDragon Corp.’s planned and outstanding bond issuances worth P25 billion have been assigned the highest issue credit rating of PRS Aaa by Philippine Rating Services Corp. (PhilRatings).

The ratings agency said this is for DoubleDragon’s proposed bond issue of up to P10 billion and its outstanding bonds of P15 billion. 


PhilRatings likewise assigned an Issuer Credit Rating of PRS Aaa (corp.) to DoubleDragon. The assigned credit ratings have a "stable outlook." 

DoubleDragon is a joint venture between fast food entrepreneurs Edgar “Injap” Sia II (founder of Mang Inasal) and Tony Tan Caktiong (founder of Jollibee). 

The company is in real estate development and has four principal business segments: retail leasing, office leasing, hospitality, and industrial leasing. 

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong. 

A stable outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

An Issuer Credit Rating is an opinion on the overall creditworthiness of the company, evaluating its ability to meet all its financial obligations within one year. 

A company rated PRS Aaa (corp.) has a very strong capacity to meet its financial commitments relative to other Philippine corporations. PRS Aaa (corp.) is the highest Corporate Credit Rating assigned on the PRS scale.

The assigned ratings and the corresponding Outlook consider DoubleDragon’s clearly defined and well-executed growth strategy, its experienced management, and its ability to form solid alliances with industry-recognized partners.

The ratings also factored in DoubleDragon’s conservative financial position, considering the capital-intensive nature of the company’s business and expectations of improved operating cash flow backed by increasing rental income.

DoubleDragon expects its debt level to decline as the Company continues to generate positive cash from operations while its cash reserves build up. 

Operating cash flow is forecast to be positive over the projected period due to increased recurring income from leasing operations. 

Future funding requirements for financing and investing needs are projected to come primarily from operating cash and cash reserves.