Philippine Rating Services Corp. (PhilRatings) stated that it is closely monitoring developments within the Del Monte Group to determine if the recent filing for Chapter 11 Bankruptcy of the US unit will impact the ability of Del Monte Philippines, Inc. (DMPI) to pay its outstanding bonds.

On July 2, 2025, Del Monte Pacific Limited (DMPL) disclosed that its U.S. subsidiary, Del Monte Foods Holdings Limited (DMFHL), has filed for Chapter 11 Bankruptcy and that DMFHL will be deconsolidated from the DMPL Group.

“The bankruptcy proceedings do not relate to a company with outstanding bonds rated by PhilRatings. The outstanding bonds amount to ₱645.9 million and will mature on October 30, 2025. At present, the bonds have a rating of PRS Aaa, with a Stable Outlook,” PhilRatings said.

It noted that, “DMPI settled an amount of ₱5.8 billion when it matured on October 30, 2023. Moreover, according to DMPL, these developments are not seen to cause any disruption to its operations outside the U.S. DMPI is the Philippine subsidiary of DMPL.”

“PhilRatings is closely monitoring developments within the Del Monte Group and will continue to evaluate any news/changes as these arise.

“PhilRatings’ has also reached out to its key officer contact in DMPI regarding the potential financial implications of these recent events on the Company,” the ratings agency said.

It noted that DMPI has maintained that the bankruptcy proceedings of DMFHL will not negatively impact DMPI’s operations, its relationships with local banks, and access to financing.

“DMPI and its parent, DMPL, have stated that they have not guaranteed any loans of DMFHL or its subsidiaries and that DMPI and DMPL have no contingent liability with respect to DMFHL’s or its subsidiaries’ financial obligations,” PhilRatings said.

It was observed that DMPI has remained profitable owing to resilient consumer demand, supported by its strong and stable supply chain.

While DMPI maintained a positive bottom line in prior years, it recorded a decline in the last two fiscal years, before achieving a robust recovery in the first nine months of Fiscal Year 2025.

DMPI’s cash flow from operations also remained positive in FY2024 at ₱4.9 billion and approximately ₱19.1 billion ($332 million) in fiscal year 2025. The current ratio was at 0.9 times as of the end of January 2025, while the debt-to-equity ratio was at 2.1 times.