SMC Brewery's bonds maintain top rating

San Miguel Brewery, Inc. (SMB) has maintained the highest PRS Aaa issue credit rating with a Stable Outlook from Philippine Rating Services Corporation (PhilRatings) for its outstanding bonds totaling R34.81 billion.

The bonds consist of Series C worth billion maturing in 2019; Series E worth R10.00 billion maturing in 2019; Series F worth R7.00 billion maturing in 2022; Series G worth R12.46 billion maturing in 2021; and Series H worth R2.54 billion maturing in 2024.

PhilRatings said 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.

On the other hand, a Stable Outlook means “the rating is likely to remain unchanged in the next twelve months.”

The ratings considered SMB’s sustained track record of generating a significant amount of cash from operations, relative to debt servicing and other capital expenditure requirements.

It also took into consideration the firm’s sustained financial flexibility and adequate capitalization and its experienced management and production team, with technical support from Kirin Holdings.

Also factored in is SMB’s strong market position domestically given well-received products, both old and new, with a long history of sustaining significant competitive advantages. (James A. Loyola)