Megaworld's 5-year bond issue gets highest rating

MANILA, Philippines - The Credit Rating and Investors’ Services Philippines Inc. (CRISP) assigned an ‘AAA’ rating to Megaworld Corp.’s proposed five-year bond obligation with a par amount of P3 billion with additional P2 billion in case of an oversubscription.

The ‘AAA’ rating reflects CRISP’s highest rating that reflects strongest capacity to repay debt obligations on the proposed bond as a direct, unconditional, unsubordinated and unsecured debt obligation of Megaworld Corp.

Noel Leyco, CRISP president and rating committee chair, said that in assigning the rating to Megaworld, CRISP’s rating committee considered the strong financial performance of Megaworld as indicated by its robust income growth over the last few years, a solid net cash position and dominant share in high growth market segments that comprise the mid-income residential market and office space for BPOs. CRISP also cited Megaworld’s land banking strategy that provides the company the flexibility to meet potential demand and intense competition from other players.

Megaworld Corp. is a major property developer in the country with substantial involvements in the residential and commercial projects in the metropolitan area.

CRISP is a credit rating agency founded in 2008 by credit analysts with international experience from global leaders in the credit rating business. CRISP’s credit rating technical pool is reinforced by local industry analysts and experts to form a credible team of risk analysts conducting an objective and insightful investment analysis.