Filinvest's Bond Issuance Gets Good Credit Rating

Philippine Rating Services Corporation (PhilRatings) assigned an Issue Credit Rating of PRS Aaa to Filinvest Land, Inc. (FLI) proposed P8.0 billion Bond Issuance, with an Oversubscription Option of up to P2.0 billion.

Photo Insert: Obligations rated PRS Aaa are of the highest quality with minimal credit risk.

It also maintained the PRS Aaa Issue Credit Rating for each of the outstanding bonds of FLI, with a total amount of P25.8 billion. 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. PRS Aaa is the highest rating assigned by PhilRatings. Each of the ratings was also assigned an Outlook of Stable.

An Outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public. A Stable Outlook is defined as:

“The rating is likely to remain unchanged in the next twelve months.” The assigned issue credit ratings take into account the following key considerations: (1) FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion; (2) its sound growth strategies, focused on building a balanced mix of real estate sales and recurring income; (3) its muted earnings in view of the current pandemic crisis, counterbalanced by positive cash flows; and (4) the subdued industry performance given the lingering economic and market uncertainty caused by the COVID-19 pandemic.

PhilRatings’ ratings are based on available information and projections at the time that the rating process was ongoing. PhilRatings shall continuously monitor developments relating to FLI and may change the rating at any time, should circumstances warrant a change. FLI is the real estate arm of the Gotianun-owned Filinvest Development Corporation (FDC). As of end June 2021,

FDC owns 64.9% of the Company. FDC is one of the country’s leading conglomerates, with interests in property, banking services, power, sugar, and infrastructure.

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