MANILA, Philippines - Small Business Corp., which aims to be the leader in small enterprise development financing and small credit delivery systems nationwide, obtained an issuer rating of PRS Aa minus from local debt watcher Philippine Rating Services Corp. (PhilRatings).
SBC is attached to the Department of Trade and Industry and under the policy and program supervision of the Micro, Small, and Medium Enterprise Development (MSMED) Council.
An issuer rating of PRS Aa means that a company differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
A plus or minus sign is added to qualify the relative position of an issuer for a particular rating category.
SBC’s issuer rating is valid for one year but can be changed at any time should circumstances warrant any change.
The rating assigned to SBC takes into account the agency’s recognized policy role in the government’s continued thrust to strengthen the country’s micro, small and medium enterprises (mSMEs); its management which is very knowledgeable about and well-experienced in relation to the mSME sector; and its fair financial profile.
Under Sec. 11 of the Magna Carta for Small and Medium Enterprises, SBS has “the primary responsibility of implementing policies and programs to assist mSMEs in all areas, including, but not limited to finance and information services, training and marketing.â€
Based on its financial report, SBC’s net income, excluding unrealized gains/loss on foreign exchange translation and derivative valuation, reached P68.7 million last year, slightly lower than the 2011 level.
Pre-tax performance for the first half of 2013 appears on track to achieve forecasts submitted to PhilRatings.
“Moving forward, operating cash would be supplemented by borrowings to fund loan portfolio expansion. Limited financial support from the government is compensated by available funding from international development institutions, which SB Corp can access given the agency’s public role,†PhilRatings said.