JG Summit’s P30 billion bonds retain top credit rating

MANILA, Philippines — JG Summit Holdings Inc., the listed investment arm of tycoon John Gokongwei,   maintained the top credit rating of PRS Aaa for its P30 billion fixed rate retail bonds, the Philippine Rating Services Corp. said.

PRS Aaa is the highest rating assigned by PhilRatings.  Obligations rated PRS Aaa are of the highest quality with minimal credit risk.   This means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.  

The bonds were also assigned a stable outlook, which indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months. 

JG Summit  is one of the largest and most diversified conglomerates in the Philippines with substantial interests in food, agro-industrial and commodities, real estate and hotels, air transportation, banking and petrochemicals.  

 The rating reflects JG Summit’s strong liquidity, its sound capitalization structure, the solid market position of its core businesses, and its well-experienced shareholders and management.

“Liquidity continued to be healthy, with current ratio at 1.0x as of the end of September. Cash and cash equivalents and short-term available-for-sale investments totaling P66.4 billion was more than enough to cover short-term debt (including current portion of long-term debt) of P59.1 billion,” PhilRatings said.  

JG Summit’s  P24.5 billion  long-term bonds which will mature in 2019 will be refinanced.  

“In addition to its strong internal cash generation, external liquidity is available to the group through its credit facilities with domestic and international financial institutions.  Historically, fund-raising exercises of the group, via debt or equity, have been successful,” PhilRatings said.

 Food manufacturing arm  Universal Robina Corp. is one of the leading food and beverage companies in Southeast Asia.  In the Philippines, the company is considered a strong market player.  URC has a leading position in the snacks, candies, chocolates and cup noodles categories.