SM Prime gets top rating for planned P10-B bonds

MANILA, Philippines - The planned P10 billion bond sale of SM Prime Holdings Inc. has been given top credit rating by Philippine Rating Services Corp.

In a statement, PhilRatings said the proposed bond issue of P5 billion with an oversubscription option of P5 billion, was assigned a rating of PRS Aaa.

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.

PRS Aaa is the highest rating assigned by PhilRatings.

PhilRatings assigned a stable outlook for the ratings of the proposed and outstanding bonds.

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.

The bonds form part of the company’s planned three-year debt securities program of up to P60 billion.

SM Prime’s outstanding bonds amounting to P39.99 billion was likewise maintained at PRS Aaa.

The rating takes into account  SM Prime’s strong financial profile, solid brand equity, well diversified portfolio, continuous aggressive construction and expansion of development projects.

The consolidation of the SM Group’s real estate properties made SM Prime one of the biggest integrated developers in the country.

SM Prime is primarily engaged in the development of malls, residential, commercial and hotel and convention centers.

As of the end of the first quarter, SM Prime had 56 malls across the country with a total gross floor area  of 7.3 million square meters. These are strategically located in Metro Manila and in the provinces of Luzon, Visayas and Mindanao.