Phoenix Pet to issue P2-B STCPs

MANILA, Philippines - Independent oil player Phoenix Petroleum Philippines will issue P2 billion worth of short-term commercial papers (STCPs) to raise working capital to fund future expansion, a company official said.

Phoenix Petroleum vice president for external affairs Raymond Zorrilla said the issue date has yet to be determined after regulatory approvals but the company is eyeing the fund-raising activity within the quarter.

Local debt watcher Philippine Rating Services Corp. (PhilRatings) has assigned an issue credit rating of PRS 2 (minus) to the proposed short-term commercial papers (STCPs).

According to PhilRatings, obligations rated PRS 2 exhibit above average or strong capability for payment of both interest and principal.

“This is normally evidenced by many characteristics of a PRS 1 rating but to a lesser degree. Earning trends and coverage ratios, while sound, will be more subject to variations. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is also maintained by the company. A plus or a minus sign can be added to further qualify an assigned rating,” PhilRatings said.

In assigning the ratings to Phoenix, the debt watcher said the rating takes into consideration Phoenix Petroleum’s consistently improving revenue base and adequate liquidity and financial flexibility, its aggressive network expansion resulting in market leadership in the independent players sector and its competent and experienced management team.

Nonetheless, PhilRatings said it shall continuously monitor developments relating to Phoenix Petroleum and may change the rating at any time, should circumstances warrant a change.

Phoenix has 358 retail stations as of end-2013 since it opened its first outlet in 2005.

It accounted  for a 4.4-percent share of the total market as of end-2012 and improving further to 7.2 percent as of the first half of 2013, making it the biggest independent oil player in the country.         

Its other businesses include trading, terminaling and hauling. The company likewise distributes lubricants and chemicals.