Philippine Rating Services Corporation (PhilRatings) has assigned a credit rating of PRS A (corp.), with a stable outlook to Cirtek Holdings Philippines Corp.’s (CHPC) P2- billion commercial paper.
The company has an application for a P6-billion commercial paper shelf-registration.
PhilRatings assign the credit rating PRS A (corp.) to issuance that has an above average capacity to meet its financial commitments relative to that of other Philippine corporates, while somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates. Astable outlook indicate that the rating “is likely to be maintained or to remain unchanged in the next 12 months.”
In giving the credit rating, PhilRatings said it looked into the company’s manageable liquidity and capitalization levels; established track record in the industry, supported by a strong and experienced management team; strong customer base of well-established and global companies, diversified in terms of region and industries; improved profit margins despite lower revenues, attributable to the company’s cost management efforts; and highly competitive and cyclical industry that is susceptible to adverse changes in various economies and characterized by the presence of larger international players.