By James A. Loyola
Filinvest Development Corporation (FDC) is seen to enjoy stable revenues streams particularly from its real estate and banking businesses as it allots capital expenditures of ₱40.2 billion for expansion this year.
The flagship of the Gotianun family is expected to focus on projects and developments in Clark, Pampanga in 2019, which includes the Clark International Airport, Filinvest Mimosa+ Leisure City and the 64-hectare Phase 1 of the Group’s township development in New Clark City.
Because of this, Philippine Rating Services Corporation (PhilRatings) has maintained the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, for FDC’s outstanding bond issue of ₱8.8 billion.
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.
A Stable Outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
In arriving at the rating, PhilRatings noted FDC’s key strengths such as the stable revenue stream from its diversified business portfolio; and that the company’s main contributing subsidiaries, in terms of income and cash flows, have a proven track record and have established brand names.
It also considered FDC’s conservative and professional management and growing and well-positioned businesses, particularly in real estate and banking.
According to Jones Lang LaSalle, the real estate industry in the country is seen to continuously grow–driven by the business process outsourcing (BPO), online gaming, and other tech-driven companies.
JLL also stated that among the key drivers of real estate demand are the mainland Chinese investors, who are associated with offshore gaming. Furthermore, the growth in Chinese businesses in the country also boosted office and residential space demand.
The Philippines’ banking system, on the other hand, obtained a higher score of group 5, from group 6, on S&P’s revised Banking Industry Country Risk Assessment (BICRA) in February 2019.