SM Php10 Billion Bonds Maintain PRS Aaa Rating
(PHStocks) – Philippine conglomerate SM Investments Corp. (PSE: SM) disclosed today that its Php10.0 billion fixed-rate bond issued in June 2009 maintained its rating of PRS Aaa from the Philippine Rating Services Corporation (PhilRatings). PRS Aaa is the highest rating assigned by PhilRatings to obligations that are of the utmost quality with minimal credit risk. It is also assigned to issuing companies with an extremely strong ability to meet its financial obligations.
“The rating reflects SM’s sound investment portfolio, consisting of core businesses with solid market position, sustained earnings and recurring cash flows; well-established brand equity, enhanced by synergies within the SM Group; strong liquidity; and sound capitalization. The rating also considers the continued relatively positive prospects for the Philippine economy in general, and the industries where the SM Group has primary investments in particular,” PhilRatings explained in its 28 September 2011 report.
On June 25, 2009, SM issued fixed rate bonds, which were comprised of 5-year or Series A bonds and 7-year or Series B bonds due on June 26, 2014 and June 15, 2016, respectively. The total issuance amounted to Php9.0 billion for the former and Php1.0 billion for the latter. The proceeds of the bonds were used for the various expansion projects of SM and its subsidiaries, and for general corporate purposes.