“The rating for Robinsons Land Corporation’s (Robinsons Land) P2.0 billion bonds is PRS Aa,†PhilRatings announced. The bonds, to be issued within the year, will mature five years and one day from issue date.
A PRS Aa rating is defined as: “With large margins of protection. Fluctuations of protective elements, however, may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than for PRS Aaa-rated securities.†PRS Aaa-rated securities, on the other hand, are defined as those with the “smallest degree of investment risk.â€
Robinsons Land’s bond credit rating reflects the company’s good business franchise and asset quality, its conservative capital structure, and ample cash flow protection. The company is a leading commercial center operator, both in terms of mall count and occupancy rate. The over-all sluggishness in certain segments (e.g. hotels, high-rise development) of the property development sector was likewise considered in arriving at the rating although Robinsons Land continues to perform satisfactorily in these areas.
The company’s commercial centers remain as Robinsons Land’s main revenue driver, accounting for about 60% of real estate revenues in 2001. Revenues from its newly-opened and planned malls are expected to continue to boost earnings going forward. For the interim period October 2001-June 2002, earnings amounted to P845.8 million. This already exceeds earnings for the whole of fiscal year 2001 of P801.7 million.