SM secures top rating for bond offer

Regional property giant SM Prime Holdings Inc. has obtained a sterling credit rating from local credit watchdog Philippine Rating Services Corp. on its upcoming P25-billion local bond offering.

Philratings issued a credit rating of “PRS Aaa” on SM Prime’s proposed bond issue of P15 billion, with an oversubscription option of up to P10 billion.

Obligations rated “PRS Aaa” are deemed of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is considered “extremely strong.”

In a press statement, Philratings said the rating reflected the following considerations:

SMPH’s established brand name and operational track record, enhanced by synergies among the SM Group of companies;

The positive outlook across its core business segments, supported by strong macroeconomic fundamentals;

SMPH’s highly experienced management, with strong expertise in property development and investment risk management; and,

Its solid financial profile, characterized by sound liquidity, stable profitability and a conservative capital structure.

PhilRatings noted that the consolidation of SM’s real estate properties made SMPH one of the biggest integrated developers in the Philippines—its strong position further enhanced by its growing mall operations in China.

“SMPH’s performance is supported by the country’s sound macro-economic fundamentals, and its growing retail and real estate industries,” it said.