D&L bonds maintain top credit rating

MANILA, Philippines — D&L Industries Inc., the country’s leading specialty food ingredients and oleochemicals producer, has maintained the highest credit rating for its outstanding bonds.

D&L said Philippine Rating Services Corp. maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for the company’s total outstanding fixed rate bonds amounting to P5 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk.

PRS Aaa is the highest rating assigned by PhilRatings, indicating that the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

A Stable Outlook, on the other hand, is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.

The rating and outlook were assigned to D&L given the company’s strong market position in the industries that it is engaged in, diversification of products offered and markets served, as well as its innovation-driven specialty products that protect the company from keen competition and ensure continued demand from customers.

Also among the key considerations are its relatively stable margins amid higher cost and expenses and conservative debt management and adequate cash flow generation.

“As the economy continues to recover from the pandemic, D&L is positive that it is more capable to withstand adverse environments with the expertise it has learned through its years of operations,” the company said.

D&L is optimistic given the continued strong demand for its products as these mainly cater to essential industries and basic materials,” it said.