October 29, 2013 9:30 pm [
manilatimes.net ]
by Madelaine B. Miraflor Reporter
Local debt watcher Credit Rating and
Investors Services Philippines Inc. (CRISP) has given the P5-billion bonds
issuance of Rockwell Land Corp. a top rating that signifies the firm’s strong
capacity to repay its debt even in a worst case scenario.
CRISP announced that it has assigned a
“AA+” issuer rating on Rockwell Land with a “Positive Outlook” as the real
estate company offers to the public its 7+ year, fixed rate, unsecured
P5-billion bonds.
The “AA+” rating represents CRISP’s
credit rating opinion on a borrower’s very strong capacity to repay debt with a
low probability of default, and a high recovery rate in a worst case scenario.
“Crisp’s ‘AA+’ rating assignment is
underpinned by a combination of Rockwell Land’s strong presence in the top
segments of the property development market, impressive income growth, and
prudent fiscal management policy,” the debt watcher said.
According to Crisp, Rockwell Land
keeps an impressive mix of residents with 45 percent local and 55 percent
foreign residents.
Upon the targeted completion of the
Proscenium by 2018, a flagship
project designed by a world renowned
architect of L’ Opera de la Bastille fame in Paris, Rockwell Land is expected
to strengthen its hold on the high-end property market.
CRISP also cited that Rockwell Land’s
strong financial performance during the last five years is marked by an annual
net income growth averaging close to 20 percent during the period beginning
2008.
This year, the company’s net income
growth year-on-year is expected to increase by 22 percent. Annually, the
company’s earnings before interest, taxes, depreciation and amortization grew
by 19 percent over the last three years, while its consolidated revenues for
the first half of 2013 grew by 26 percent to P3.2 billion.
“CRISP believes that Rockwell Land’s
ability to command premium rates has, in turn, resulted in its ability to
generate strong income,” the debt watcher said.
The rating agency further said that it
assigned a positive outlook to signify its confidence that Rockwell Land’s
focused growth strategy will result in stronger financial outcomes, increased
market share, and a more diversified market presence.
This outlook is premised on a stable
interest rate, robust overseas remittance trends, and calm overall political
environment, it added.
___________________________________________________________
