The rating means that the issue has large margins of protection. Fluctuations of protective elements, however, may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than for PRS Aaa-rated securities which are in turn, characterized as those having the "smallest degree of investment risk."
ATI issued P1.5 billion in LTCPs in 1998 and has since brought down the outstanding balance by meeting due payments promptly, even in a difficult economic environment. The papers mature in June this year.
In assigning the rating, Philratings has taken into consideration the relative amount of LTCPs outstanding and the close proximity of the maturity dates considering ATI’s stable and improving financial performance and condition.
Philratings said ATI’s ample financial flexibility allows it to complement internally-generated funds with necessary borrowings to finance its regular capex requirements and to meet maturing obligations.
It also took into account the company’s prospect of being able to generate significant proceeds from the possible sale of the Mariveles Grains Terminal in the short-term.
The looming war in the Middle East and its ill effects on the Philippine economy in terms of heightened uncertainty and possible disruption of trade, decreased trade volumes, increased volatility in exchange rates and cost of inputs have also been considered in the over-all evaluation.
For the year 2002, the company estimates net revenues at P4.1 billion; and net income at P641 million, a 26-percent jump from the P511 million reported a year earlier.
ATI has benefited from its commercial logistics business, which is expected to grow steadily. The company’s expertise in this field has expanded its roster of clients which includes the Shell-Malampaya natural gas exploration project, Mobil Philippines, Ford Motors, General Motors, Honda Cars, Goodyear Tires, SC Johnson Co., Procter & Gamble and Nestle Philippines.