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.