ABS-CBN gets high ratings for P6-B bond issuance

ABS-CBN Corp., one of the country’s biggest television companies, maintained the top credit rating for its P6-billion bond issuance, according to the Philippine Rating Services Corp. (Philratings).

In a statement, Philratings said the debt, which would fall due on Feb. 10, 2021, was rated PRS Aaa, which indicated minimal credit risk on the part of the issuer.

In assigning PRS Aaa, the debt watcher cited ABS-CBN’s continued good audience market share and retention of its “popular” talent pool, track record of its officers and management, sustained profitability and sustained “ample coverage for interest and principal payments.”

Philratings likewise cited moves  by ABS-CBN’s management to keep pace “with new trends in technology and media.”

“Some of its initiatives and innovations include the launching of Digital Terrestrial Television through ABS-CBN TVplus, also known as the Mahiwagang Black Box, and its network sharing agreement with Globe Telecom, Inc.   to offer ABS-CBNmobile,” Philratings said.

It also cited the implementation of a new advertising pricing scheme starting May 2015.

“ABS-CBN plans to use the cost per individual rating point  system. While the company is the first broadcaster in the country to use it, the Philippines is one of the last countries in Southeast Asia to do so,” Philratings said.

The previous pricing model used by ABS-CBN involved charging fixed prices for advertisers. With the cost per individual rating point pricing model, advertisers will be charged depending on the actual rating of the show.

In the first quarter of 2015, the company was able to increase its consolidated revenue year-on-year by 2.4 percent percent to P8.39 billion. This was backed by an increase in advertising revenues and its pay TV business through SkyCable.–Miguel R. Camus