By Neil Jerome C. Morales (The Philippine Star) | Updated June 7, 2013 - 12:00am
MANILA, Philippines - Gotianun-led property firm Filinvest Land Inc. (FLI) has retained the top credit score for its roughly P19 billion worth of existing and planned bonds.
Local debt watcher Philippine Ratings Services Corp. (PhilRatings) said it maintained the issue credit rating for FLI’s outstanding P14.5 billion bonds at PRS Aaa.
The credit rating for another P4 billion worth of bonds expected to be issued this second quarter was also kept at PRS Aaa.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” PhilRatings said.
PhilRatings said the credit score reflects FLI’s position as one of the leading property developers in the country, strong revenue growth, and healthy economic and industry conditions.
The outstanding bonds of the property developer are the P4.5-billion bonds due in 2014, P3-billion bonds due in 2016 and P7-billion bonds due in 2019.
FLI plans to sell P4 billion worth of bonds in the second quarter as the property arm of the Gotianun family jacks up its capital expenditures by a third to P20 billion this year to sustain its growth particularly in the residential segment.
Of the capital spending, P10 billion is earmarked for residential project development costs, P7 billion for the construction of office buildings and malls, and the balance of P3 billion for landbanking activities.
“FLI is one of the leading property developers in the country specializing in socialized, affordable and middle-income housing segments,” PhilRatings said.
“Going forward, the company’s performance is expected to be supported by healthy economic and industry conditions,” it added.
So far, the company has more than 100 projects in 39 cities across the country, with a landbank of 2,251 hectares as of end-2012.
In the first quarter, profits of the property firm jumped 25 percent to P934 million from P748 million a year ago on the back of strong real estate sales and leasing income.
Total revenues rose 15 percent to P3.157 billion from P2.735 billion last year.
PhilRatings said its credit score is based on available information and projections at the time the rating review is ongoing.
“PhilRatings shall continuously monitor developments relating to FLI and may change the rating at any time, should circumstances warrant a change,” it added.