Stradcom prepays P600-million balance of asset-backed bonds

MANILA, Philippines - Stradcom Corp., the sole provider of IT-enabled services to the Land Transportation Office, has prepaid the the remainining outstanding balance of P600 million of its asset-backed bonds.

The payment was made on July 26, nine months ahead of the bonds’ date on April 25, 2011.

The bonds were originally issued in three series, with a total amount of P1.6 billion in April 2007. The bonds were backed by Stradcom’s computer fee revenues and specific contract assets in relation to the LTO IT project. Series I and Series II were paid on their due dates in October 2008 and April 2010, respectively.

Up to the time that the remaining P600 million was settled, the bonds were rated PRS Aa plus by PhilRatings.

Obligations rated ‘PRS Aa’ are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.

In assigning the rating, PhilRatings took into account the continued regular and timely remittance to the Collection Account for bond servicing; strong profitability and cash flow from operations; and growing market demand. 

With the full settlement of the issue, this rating will now be removed from PhilRatings’ official list of outstanding credit ratings.

PhilRatings is the country’s pioneer domestic credit rating agency, accredited by both the Bangko Sentral ng Pilipinas and the Securities & Exchange Commission. The agency has 25 years of experience in providing credit ratings to promote the development of the Philippine capital market.