A local debt watcher has given listed Vista Land and Lifescapes, Inc. its highest credit rating as the homebuilder kept its top position in the low-cost housing market.
From an ‘AAA’ issuer rating with a stable outlook, the firm received on Wednesday the highest rating from Credit Rating and Investors Services Philippines, Inc. (CRISP).
In assigning the rating, CRISP considered the company’s leadership in the low-cost and affordable housing market, excellent financial performance, strong management team and a successful operating model.
Vista Land leads all property developers in the country in the low-cost and affordable housing market segments.
To date, the company has built more than 250,000 homes located in 34 provinces, 73 cities and municipalities throughout the Philippines.
The rating agency also said the company has an operating model that can “successfully replicate large-scale housing community projects in its large land-banked properties widely spread throughout the country”.
CRISP likewise cited Vista Land’s financial performance, which has grown 22 percent on average in the last five years.
During the same five-year period, Vista Land’s EBITDA margins averaged 36 percent while its gross margins averaged 51 percent.
Just two weeks ago, Vista Land revealed a plan to issue P3 billion retail bonds in its maiden retail bond offering, with an over-allotment option of up to P2 billion.
The issue, according to the company, will finance the commercial development projects of its subsidiaries.
Launched in 2008, CRISP provides research and technical corporate insights in Philippine business and industries. CRISP’s analysts are recognized industry experts engaged in research and consultancy work for major companies and institutions in the country.