Sta Lucia gets AA+ rating

MANILA, Philippines – Sta. Lucia Land Inc. received an AA+ issuer rating with a stable outlook from the Credit Rating and Investors Services Philippines (CRISP).

The rating reflects SLI’s very strong capacity to repay debt obligations.

In assigning the rating, CRISP considered SLI’s 40-year track record.

“SLI is a majority-held company of the Sta. Lucia Realty Group that was incorporated in 1972. Together, SLI and SLG have a combined 40-year track record that created a footprint in 10 major regions and cities in the country as they developed over 10,000 hectares of land and more than 220 residential subdivisions,” CRISP said.

“Through the years, SLI has also added 14 golf courses in its portfolio with world-class championship courses,” the local debt watcher added.

CRISP also cited SLI’s  low debt burden.

“SLI has operated mostly from internally generated funds and has only tapped banks for its direct borrowings for just over P3 billion as against its assets of P17.8 billion and total equity of P11.7 billion.

SLI’s low debt provides the company a broader flexibility in financing its future expansion programs by tapping the capital market with fresh debt and further equity infusion,” CRISP said.

CRISP likewise noted the stable property sector.

“Although CRISP expects the election year in 2016 may produce a lot of political noise that could prompt a few buyers to temporarily defer their home purchases, CRISP also anticipates a smooth political transition of the Philippine national leadership that will immediately dissipate the uncertainties among homebuyers,” the credit watcher said.

Apart from this, CRISP noted SLI’s low level of cash relative to its working capital requirements as well as its longstanding relationship with its suppliers that have accorded the company a generous suppliers’ credit arrangement.