The Market Monitor Minding the Nation's Business
The Philippine Rating Services Corp. (PhilRatings) has given the highest quality rating of PRS Aaa on the P30 billion bond float of conglomerate JG Summit Holdings Inc. (JGSHI) which produces top brand snack foods and beverages aside from being a developer of malls and condominiums.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. The outstanding P30 billion bond issue of JG Summit, the holding company of the JG Summit Group, kept its PRS Aaa rating from Philratings,” a disclosure from JG Summit said.
Philratings has announced that the rating “reflects JGSHI’s strong liquidity, its sound capitalization structure, the solid market position of its core businesses, and its well-defined strategy that is supportive of growth.
The rating also considers the continued positive outlook for the domestic economy, which is expected to benefit the industries of JGSHI’s core businesses.”
JGSHI’s liquidity continued to be robust while cash from operations remain positive, PhilRatings said.
Capital expenditures (capex) will corner the bulk of projected cash outflow, and will be mostly for the expansion of the food, airline, and property businesses.
Historically, fund-raising exercises by the JG Summit Group in the equity and debt markets have been favorably received, indicating the strong overall corporate image enjoyed by JGSHI and its subsidiaries and associates among investors.
Its debt-to-equity (DE) ratio was kept low for the last five years (2011-2015). DE ratio is expected to further improve going forward, as debt levels are reduced and earnings are plowed back into operations.
The Group expects to end 2016 and 2017 with net loan repayments, while equity growth will come from the re-investment of earnings into the company.
Universal Robina Corporation (URC) has leading market shares in Savory Snacks, Candies and Chocolates.
URC is also the largest player in the ready-to-drink (RTD) Tea market and Cup Noodles business. URC market leadership attributed due to its marketing, product innovation and quality, strong brand, effective nationwide distribution chain and sales network.
Robinsons Land Corp. (RLC) is developing shopping malls and hotels, mixed-use properties, office and residential buildings, land and residential housing developments. These are located nationwide.
Cebu Air, Inc. (CEB) operates under the trade name Cebu Pacific Air, and is the leading low-cost carrier (LCC) in the Philippines. CEB was the first airline to adopt the LCC business model in the local aviation industry. CEB also pioneered the following “firsts” in the Philippine aviation industry: e-ticketing, web and mobile check-in, self check-in, seat selection as well as online booking through the airline’s website. RIZA LOZADA