A rating of PRS Baa denotes that the LTCP’s are "neither highly protected nor poorly secured; interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may characteristically be unreliable over any great length of time."
A rating of PRS Caa, on the other hand, is defined as: "Poor standing. There is high possibility of default and there may be elements of danger with respect to interest and principal."
In assigning the new rating, PhilRatings took note of the development regarding the settlement of the company’s convertible bonds.
To date, $37.7 million have already been put in escrow for the benefit of the bondholders, effectively bringing down the outstanding obligations to $18.4 million.