San Miguel Brewery’s P35-B bonds keep top credit rating

LOCAL debt watcher Philippine Rating Services Corp. (PhilRatings) maintained the top credit rating for San Miguel Brewery, Inc. (SMBI)’s P34.81-billion bonds, citing its continued positive performance and strong position in the market.

In a statement issued over the weekend, PhilRatings said SMBI’s bonds continue to carry its highest issue credit rating of PRS Aaa. This indicates that the company has an “extremely strong” capacity to meet its financial commitments. The rating also has a stable outlook, which means that it is unlikely to change in the next 12 months.

SMBI’s outstanding bonds include Series C bonds worth P2.81 billion due 2019, Series E worth P10 billion due 2019, Series F bonds worth P7 billion due 2022, Series G bonds worth P12.46 billion due 2021, and Series H bonds worth P2.54 billion due 2024.

PhilRatings said it took into account SMBI’s financial conditions, market position, and its management team in coming up with the rating.

SMBI currently has six production facilities in the country, in addition to one brewery each in Hong Kong, Indonesia, Vietnam, and Thailand, and two more in China. Here, the company manufactures products under the brands San Miguel Pale Pilsen, Red Horse Beer, and San Mig Light.

“Over the years, SMB has demonstrated its ability to anticipate and respond well to market trends with its introduction of new products like San Mig Zero, San Mig Flavored Beer and new product formats like cans and draft beer. These products ride on the back of an extensive and efficient distribution system,” PhilRatings said.

SMBI is currently being consolidated under San Miguel Pure Foods Company, Inc., as part of the San Miguel group’s effort to merge its traditional businesses. The new entity will then be renamed San Miguel Food and Beverage, Inc. —