Firm's planned bond issue gets 'very strong' credit rating

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Business.(Business File photo)

THE Philippines Rating Services Corp. (PhilRatings) has assigned an Issue Credit Rating of PRS Aa, with a Stable Outlook, to Megawide Construction Corp.’s (Megawide) proposed bond issue of P4 billion, with an oversubscription offer of up to P1 billion.

Proceeds from the base offer will be used to refinance the company’s existing debt obligations and for other general corporate purposes, while the oversubscription allotment will include business development opportunities.

PhilRatings also maintained its Issue Credit Rating of PRS Aa, with a Stable Outlook, for the company’s outstanding rated bonds of P4 billion.

The assigned ratings took into account: (1) Megawide’s solid experience in the construction industry, along with vertically integrated operations, which are seen to complement the government’s infrastructure projects; (2) its notable expansion projects in recent years, to diversify into less cyclical sources of revenues; (3) the favorable industry outlook and opportunities, backed by the government’s infrastructure projects; (4) the rebound in the company’s earnings, albeit with easing margins attributed to a strategic approach; and (5) its improved leverage levels. / PR

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