LOCAL DEBT WATCHER PHILIPPINE RATING Services Corp. (PhilRatings) has affirmed its ?high quality? rating for debt notes issued by information technology services firm Stradcom Corp., citing the steady growth in the company?s revenue.

The rating firm affirmed its ?PRS Aa plus? rating for Stradcom, which holds the exclusive right to provide vital IT services for the Land Transportation Office (LTO).

Bonds with PRS ?Aa? plus grade, PhilRatings said, ?are of high quality and subject to very low credit risk.?

?(Stradcom?s) capacity to meet its financial commitment on the obligation is very strong. A plus sign is included to further qualify the rating,? PhilRatings said in a statement.

PhilRatings said Stradcom had set aside nearly P600 million to meet the next principal maturity of its asset-backed securities.
Thus, the P500 million in obligation Stradcom will have to repay by April 25 next year will be ?easily met,? PhilRatings said.

The bonds issued in three series in 2007 are backed by Stradcom?s computer fee revenues and specific contract assets in relation to the LTO IT project.

Series I of the bonds amounting to P500 million matured on Oct. 25 last year, and was paid on time, the rating firm pointed out.
The outstanding P1.1 billion will be repaid in two tranches, with the first one in April next year and the next in April 2011.

?Going forward ? Stradcom?s profitability and cash flow from operations are expected to remain strong due to its position as the sole provider of IT-enabled services to the LTO,? PhilRatings said.

Stradcom?s revenue grew 5.88 percent to P1.8 billion in 2008 from a year earlier, due to a combination of higher computer fees, increase in transaction volume and the implementation of new services.