Cebu Landmasters’ Proposed Sustainability-Linked Bonds of up to P5.0 Billion Receive a Very Strong Credit Rating

The Philippine Ratings Services Corporation (PhilRatings) assigned an issue credit rating of PRS Aa plus, with a Stable Outlook to Cebu Landmasters, Inc.’s (CLI) proposed Sustainability-Linked Bonds amounting to P3 billion, with an Oversubscription Option up to P2 billion.

​According to PhilRatings, obligations rated “PRS Aa” are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong. The “plus” further qualifies the assigned ratings. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

In arriving at such rating and Outlook, PhilRatings identified the following key considerations:

a) CLI’s sound management and strategy, with a sustained competitive advantage in the Visayas and Mindanao (VisMin) markets as evidenced by its growth over the last few years;
b) Its steady earnings growth on account of the Company’s real estate sales;
c) Its adequate liquidity and acceptable leverage level; and
d) Threats from a highly competitive market, with peers having access to significant capital and a substantial landbank.

This is third and final tranche of the Company’s three-year Shelf Registration program of up to P15.0 billion. In addition, PhilRatings has also maintained its Issue Credit Rating of PRS Aa plus, with a Stable Outlook, to the Company’s outstanding bond issuances of P10.0 billion.