AEV bonds get highest credit rating

Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) has received the highest credit rating from the Philippine Rating Services Corp., (PhilRatings) for its planned P25-billion fixed-rate bond issuance.

PhilRatings gave a credit rating of PRS Aaa to AEV’s proposed bond issuance, assuring that the obligations are of the highest quality with minimal credit risk.

“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. AEV’s outstanding P8 billion in retail bonds, the most recent rating review for which was completed in March 2015, likewise continue to maintain their PRS Aaa rating,” PhilRatings said.

AEV already filed with the Securities and Exchange Commission a preliminary registration statement for its fixed rate retail bonds in the aggregate principal amount of up to P25 billion, including oversubscription.

The bonds, intended to be issued this year, have tenors ranging from five, seven and 12 years.

Proceeds from the bond issuance will be used to partially finance AEV’s planned acquisitions, future investments and other general corporate requirements

“PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to AEV and may change the rating at any time, should circumstances warrant a change,” it said.

AEV is one of the largest conglomerates in the Philippines, with investments in the power, banking, food manufacturing and property development sectors.