SMIC's P10-B issue keeps highest rating


Posted at Aug 02 2010 05:06 PM | Updated as of Aug 03 2010 01:06 AM

MANILA, Philippines - Credit rating agency Philippine Rating Services Corp. (PhilRatings) has maintained the highest rating of "PRS Aaa" for the P10-billion bond offer of SM Investments Corp. (SMIC).

A PRS Aaa rating means that obligations are of high quality with minimal credit risk. It also means that the company's capacity to meet its financial commitment is extremely strong.

"The rating reflects SMIC's diversified business portfolio which includes core companies with strong market positions, sustained earnings, and recurring cash flows; solid brand equity and experienced management team; strong liquidity; and sound capitalization. The rating also considers the positive prospects for the Philippine economy, in general and for industries where the SM Group has exposure, in particular," PhilRatings said in a statement.

SM Investments, the listed holding firm of tycoon Henry Sy, is engaged in retail, shopping mall development, financial services, real estate, and hotel and entertainment.