ABS-CBN gets highest rating for P10-B bonds
MANILA,Philippines - ABS-CBN Corp. received the highest credit rating from Philippine Rating Services Corp. (PhilRatings) for its proposed P10 billion bond issuance.
ABS-CBN's proposed bond issuance is aimed at raising funds for its capital expenditures and working capital this year.
PhilRatings assigned its highest rating of PRS Aaa to the media giant's proposed P10 billion fixed-rate bonds with a tenor of seven and 10 years.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” PhilRatings said in a statement.
PhilRatings also noted ABS-CBN's profitability amid some volatility in terms of margins and growth rates, and its good track record of sustaining ample coverage for interest and principal payments.
Also, ABS-CBN was cited by PhilRatings for its ability to consistently produce hit programs, while developing and retaining its talent pool.
PhilRatings also noted ABS-CBN's "substantial experience and track record of management and key officers who keep up with new trends to remain relevant to the mass market."
ABS-CBN is planning to issue retail corporate bonds early this year, to fund capital expenditures such as its telecommunications venture ABS-CBNmobile and the shift to digital television.
The fund raising activity would initially involve P5 billion worth of retail corporate bonds with an option to raise an additional principal amount of up to P5 billion.
ABS-CBNnews.com is the news website of ABS-CBN Corp.