By Zinnia B. Dela Peña (The Philippine Star) Updated August 20, 2010 12:00 AM
MANILA, Philippines - Robinsons Land Corp.’s outstanding P10-billion bonds maturing in 2014 maintained its PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings).
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligations is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings.
The rating was based on available information and projections at the time that the rating review is ongoing.
Backed by an established brand name and 30 years of progressive operational track record, RLC has evolved into one of the leading Philippine property development companies. It has continued to diversify purposively and has strategically positioned its business to seize opportunities presented by an improving economy and the emerging needs of an expanding market.
PhilRatings said the balanced portfolio and geographic mix of development projects ensure RLC of stable and recurring revenues from its investment properties (i.e. commercial centers, office buildings, hotels) and at the same time, enable the company to participate in a property upturn through its residential development business.
The sustained, though moderated, growth in income stream to be realized in 2010 and onwards provides the company with adequate cash to cover funding requirements for operations and investment activities.
The substantial amount of cash reserves which RLC has been accumulating provides a stable liquidity level and strong coverage of debt and interest service, currently and prospectively. The company’s liquidity is further enhanced by several layers of alternative funding sources that enable RLC to improve profitability, bolster financial flexibility and preserve capital.
“RLC’s healthy capital structure, characterized by earnings retention and a conservative debt profile, allows the company to pursue its growth initiatives,” PhilRatings said.