PhilRatings gives CHI bonds a stable outlook

CEBU, Philippines - The Philippine Rating Services Corporation (PhilRatings), announced over the weekend that it assigned a stable outlook for Cebu-based Cebu Holdings Inc., (CHI) outstanding bonds.

It likewise, maintained its PRS Aaa credit rating for the company's outstanding bonds with an amount of P5.0 billion due in 2021.

In a statement, PhilRatings explained that obligations rated PRS Aaa are of the highest quality with minimal credit risk, which also means that the obligator's capacity to meet its financial commitments on the obligation is extremely strong.

PRS Aaa is the highest rating assigned by PhilRatings.  A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

According to PhilRatings, the rating given to CHI reflects the following key considerations: CHI’s sustained profitability; its solid linkage with and support from Ayala Land, Inc. (ALI), complemented further by the competent and experienced management team of CHI; the Company’s strong competitive position given its diversified portfolio; as well as the positive prospects for Cebu.

 PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed. It shall continuously monitor developments relating to CHI and may change the rating at any time, should circumstances warrant a change.

CHI issued its outstanding bonds in 2014. The company is engaged in real property management, development, marketing and management. It was incorporated on December 9, 1988 and was publicly listed at the Philippine Stock Exchange (PSE) in 1994. The Company was established with the vision to transform the urban landscape of Cebu and help realize its economic potential.

The Ayala Land Inc. affiliate, CHI, is the one of the biggest real estate companies in Cebu City which operates across several business units (i.e. residential, commercial, shopping centers and corporate business), and it is  through these investments that Cebu Holdings has been able to sustain and grow its operations amidst stiff competition in the real estate industry.

Last year, CHI generated an impressive revenue growth of P3.7 billion a 63 percent jump from previous year, driven by its good lease income from retail and office businesses, as well as sale of commercial lots.

In March this year,  Ayala Land, Inc. its parent company, increased its stake in CHI. ALI’s stake in the Company went from 56.4 percent to 66.9 percent given the purchase of shares from First Metro Investment Corporation (FMIC), with the shares valued at around P1.20 billion. (FREEMAN)