PhilRatings

PhilRatings The Philippines' pioneer domestic rating agency. ACRAA founding member. SEC accredited. BSP recognized.

Philippine Rating Services Corporation is the pioneer domestic credit rating agency in the Philippines. It is accredited by the Securities and Exchange Commission, and recognized by the Bangko Sentral ng Pilipinas. It is also a founding member of the Association of Credit Rating Agencies in Asia.

09/02/2026

San Miguel Global Power’s Proposed Issuance of up to P30 Billion Gets PRS Aaa Rating

Philippine Rating Services Corporation (PhilRatings) has assigned an Issue Credit Rating of PRS Aaa, with a Stable Outlook, to San Miguel Global Power Holdings Corporation’s (SMGP; the Company) proposed bond issuance of ₱20.0 billion, with an oversubscription option of up to ₱10.0 billion. Furthermore, PhilRatings has maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, to SMGP’s total outstanding bonds amounting to ₱60.48843 billion.

PRS Aaa is the highest credit rating on PhilRatings’ long-term issue credit rating scale. 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 indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

In arriving at the rating and Outlook, PhilRatings identified the following key strengths: a) SMGP’s leading market position, with a solid platform for expansion; b) its strong parent company support; c) the Company’s sustained recovery in earnings despite the dip in revenues; and d) its conservative capital structure.

PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to SMGP and may change the ratings at any time, should circumstances warrant a change.

SMGP is a wholly-owned subsidiary of San Miguel Corporation (SMC), one of the largest and diversified conglomerates in the Philippines. SMC has investments in food, beverages, packaging, fuel and oil, energy, infrastructure, property development and leasing, cement, car distributorship and banking services. Operating for over 132 years, SMC’s major businesses hold market-leading positions in their respective industries.

As of July 30, 2025, SMGP is one of the country’s largest power companies, with a combined installed capacity of 5,710.08 megawatts (MW). Its diversified portfolio includes natural gas, coal and renewable energy sources such as hydroelectric power and battery energy storage systems (BESS). Based on the Energy Regulatory Commission (ERC) Resolution on Grid Market Share Limitation, SMGP’s installed capacity accounts for approximately 20.11% of the National Grid, 24.93% of the Luzon Grid, 5.25% of the Visayas Grid, and 8.86% of the Mindanao Grid, as of July 25, 2025.

Through its wholly-owned subsidiary, SMGP serves as the Independent Power Producer Administrator (IPPA) for the San Roque power plant, which accounts for 435 MW of its total installed capacity. Its existing power portfolio also includes the 536 MW Limay Greenfield Power Plant in Bataan, the 300 MW Davao Greenfield Power Plant in Davao Occidental, the 1,023 MW Masinloc Power Plant in Zambales, the 538 MW Mariveles Greenfield Power Plant in Bulacan, and the 1,200 MW Sual Power Plant in Pangasinan. The Company also holds three Retail Electricity Supplier (RES) licenses through its subsidiaries Limay Power Inc. (LPI), Masinloc Power Co. Ltd. (MPCL), and Malita Power Inc. (MPI), enabling SMGP to enter into retail supply contracts with contestable customers, including facilities of SMC’s subsidiaries, and expand its customer base.

SMGP benefits from the extensive network, expertise, and support of its parent company, SMC, which provides management and corporate services, including human resources, legal, finance, and treasury functions. SMC and its affiliates also represent a potential captive energy demand source for SMGP, given their significant electricity requirements.

To support future growth, SMGP has committed to a portfolio of expansion projects across conventional and renewable energy. These include the Masinloc Power Plant expansion through Units 4 and 5 with an aggregate capacity of 700 MW, the 1,320 MW Batangas Combined Cycle Natural Gas Power Plant (BCCPP), and the 1,000 megawatt-hour (MWh) of BESS projects. The Company is also undertaking the development of the 600 MW Mariveles Power Plant and the 2,450 megawatt-peak (MWp) first phase of its solar power projects. The BCCPP and Masinloc Units 4 and 5 are contracted with Manila Electric Company (Meralco), while the BESS projects are intended to serve Ancillary Service contracts with the National Grid Corporation of the Philippines (NGCP).

In the first nine months of 2025 (9M2025), the Company sustained its recovery in profitability despite the decrease in revenues. Top line dipped by 22.7%, from ₱153.6 billion in 9M2024 to ₱118.8 billion in 9M2025, attributable to the deconsolidation of South Premiere Power Corp. (SPPC) and downward adjustments in fuel tariffs in bilateral contracts, given falling coal fuel prices.

Net income, nonetheless, surged more than threefold to ₱42.4 billion, bolstered by the ₱21.9 billion in revaluation gains recognized during the period. In 9M2025, SMGP recorded revaluation gains from the deconsolidation of its subsidiaries SPPC, Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (IPIEC). Bottom line expansion was also supported by well managed costs and expenses, as well as higher deferred tax benefits on unrealized foreign exchange losses.

Given this, profitability margins notably improved. Net profit margin (NPM) jumped from 8.8% in 9M2024 to 35.7% in 9M2025, while return on average equity (ROAE) and return on average assets (ROAA) increased to 13.9% and 6.3%, respectively.

Excluding the one-time ₱21.9 billion revaluation gains, net income still rose significantly by 52.0% to ₱20.5 billion in 9M2025, translating to relatively slower increases in NPM, ROAE, and ROAA to 17.2%, 6.8%, and 3.1%, respectively.

In terms of leverage, SMGP’s total debt inched down by 1.0%, from ₱319.3 billion as of end-2024 to ₱316.1 billion as of end-September 2025, attributed to the settlement of maturing debt and redemption of fixed rate bonds, partly offset by new loan drawdowns and the issuance of fixed-rate notes. Total equity, on the other hand, expanded by 18.8%, from ₱359.0 billion as of end-2024 to ₱426.6 billion as of end-September 2025, driven by the continued plowback of earnings into operations, as well as the ₱56.8 billion capital infusion made by SMC.

On March 6, 2025, SMGP’s Board of Directors approved SMC’s subscriptions to the former's unissued capital stock in cash as well as authorized common shares, raising a total of ₱58.9 million. The subscription amounts were fully paid on April 7, 2025, resulting in the recognition of ₱56.8 million in additional paid-in capital, net of issuance costs.

As a result, debt-to-equity (DE) improved from 0.9x as of end-2024 to 0.7x as of end-September 2025, the lowest level since end-2017. Similarly, total debt-to-capitalization ratio decreased from 47.1% to 42.6%.

03/02/2026

PhilRatings Maintains Highest Credit Rating to AEV’s Outstanding Bonds

Philippine Rating Services Corporation (PhilRatings) has maintained an Issue Credit Rating of PRS Aaa, with a Stable Outlook, to Aboitiz Equity Ventures, Inc.’s (AEV; the Company) total outstanding bonds amounting to ₱34.3 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. PRS Aaa is the highest rating assigned by PhilRatings. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings considered the following key factors in the assignment of the rating and Outlook: a) AEV’s experienced shareholders and management, with a strong track record; b) its highly diversified investment portfolio, with recent consolidated results led by the Power segment; c) the Company’s healthy cash flows and liquidity; and d) its manageable leverage position.

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 and Outlook at any time, should circumstances warrant a change.

AEV is the publicly listed holding and management company of the Aboitiz family. As of September 30, 2025, the Company was 49.27%-owned by Aboitiz & Co., Inc. (ACO), the family’s private holding company. ACO traces its roots to the late 1800s and is reportedly the second oldest family-led business group in the Philippines. The fourth- and fifth-generation members of the Aboitiz family hold key board and management positions in AEV, complemented by seasoned non-family executives. The Company is chaired by Mr. Enrique M. Aboitiz, with Mr. Sabin M. Aboitiz serving as President and Chief Executive Officer, and Mr. Jose Emmanuel U. Hilado acting as Chief Financial Officer, Corporate Information Officer, and Chief Risk Officer.

AEV has built a diversified investment portfolio across power, food manufacturing, financial services, infrastructure, and real estate. Within this portfolio, the Power segment has consistently been the largest contributor to recent consolidated results. It generated 65.2% of total revenues in 2024 and 63.5% in the first nine months of 2025 (9M2025). This is supported by AboitizPower’s integrated presence across generation, distribution, and retail electricity supply (RES), with its RES business reported as the largest in the Philippines by market share as of end-2024, holding 1,181.98 megawatts (MW) of contracted capacity or 29.3% of the market. Food Manufacturing and Financial Services delivered moderate contributions to recent consolidated results, while Infrastructure and Real Estate segments accounted for a smaller share over these periods.

AEV continued to record strong cash flows from its operations. Operating cash amounted to ₱55.1 billion in 2024, marginally lower by 4.7% than in 2023. In 9M2025, net cash from operating activities amounted to ₱42.9 billion, slightly down by 9.5% year-on-year (YoY) but was augmented by net cash from financing activities of ₱24.2 billion. Net cash used in investing activities jumped to ₱41.2 billion and ₱58.1 billion in 2024 and 9M2025, respectively. The Company ended 2024 with a cash balance of ₱81.8 billion. Cash and cash equivalents subsequently grew by 11.1% to ₱90.8 billion as of end-September 2025, on the back of AEV’s continued strong cash generation capacity.

Supported by the Company’s cash levels, current ratio remained adequate despite slipping to 1.6x as of end-2024 and 1.3x as of end-September 2025. Satisfactory interest coverage ratios were also kept.

AEV’s leverage remained manageable, with debt-to-equity ratio at 1.0x as of end-2024 and 1.2x as of end-September 2025, as additional borrowings were mainly used to fund Aboitiz Power Corporation’s acquisition of Chromite Gas Holdings, Inc. through Therma NatGas Power, Inc. Going forward, AEV expects its debt-to-equity ratio to remain manageable.

08/01/2026

Megawide’s Planned Notes Receive Very Strong Credit Rating

Philippine Rating Services Corporation (PhilRatings) has assigned an Issue Credit Rating of PRS Aa, with a Stable Outlook, for Megawide Construction Corporation’s (Megawide) planned fixed-rate notes of up to ₱1.5 billion. Proceeds from the enrolled notes will be used for refinancing of the Company’s existing obligations and for general corporate purposes.

Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong. A Stable Outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and Outlook took into account the following key considerations: (1) Solid brand, track record, and project ex*****on capabilities; (2) Strategic transit and property initiatives driving growth opportunities; (3) Sustained increase in margins, albeit bottom line registered a moderate decline; and (4) improvement in leverage levels, which is seen to be sustained going forward.

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 Megawide and may change the ratings at any time, should circumstances warrant a change.

Megawide has established a strong reputation in the Philippine construction industry. The Company holds an AAAA Contractor’s License from the Philippine Contractors Accreditation Board (PCAB), the highest classification for private sector projects, as well as a Large B government registration for large-scale public infrastructure works. These credentials enable Megawide to undertake a wide range of government and private sector developments, including highways, bridges, airports, railways, and social infrastructure.

Over the years, Megawide has successfully delivered major infrastructure projects across different administrations, including the Parañaque Integrated Terminal Exchange (PITX), the Mactan-Cebu International Airport, the Clark International Airport, and the Public School Infrastructure Project. Recent contract awards, such as the Caticlan Airport Passenger Terminal Building, further reinforce this track record. The Company has also secured residential construction projects such as Avesta Residences under the government’s housing program, as well as Uptown Modern and One Portwood Residences. These new contracts broaden Megawide’s project portfolio across both public and private sectors.

Building on this extensive experience, Megawide continues to leverage its construction and engineering capabilities across its transport and property development platforms, creating synergies that support ex*****on efficiency and long-term growth. Transit-oriented developments anchored by the PITX are set to expand through the Baguio City Integrated Terminal (BCIT), the South Luzon Integrated Terminal Exchange (SLITX), and the Cavite Bus Rapid Transit (CBRT) projects, all of which are expected to generate recurring income through lease and concession arrangements as soon as fully operational. The Company also entered into property development through PH1 World Developers, Inc. (PH1), which focuses on the affordable to mid-income residential segment. Participation in the government’s Pambansang Pabahay para sa Pamilyang Pilipino (4PH) Program through a new subsidiary Megawide Dreamrise Residences Inc. (MDRI) is likewise expected to provide scale and strengthen its presence in the administration’s priority housing campaign.

In the first nine months of 2025 (9M2025), Megawide recorded revenues of ₱12.3 billion, down by 24.6% year-on-year (YoY). Lower top line was largely driven by the 32.7% YoY drop in construction revenues to ₱10.4 billion, as a number of the Company’s existing projects are currently at the winding down phase. On a positive note, revenues from real estate operations grew more than threefold to ₱1.5 billion, on account of the steady increase in the construction completion of ongoing projects. Direct costs also recorded a bigger decline than revenues, resulting in gross profit inching up by 4.2% YoY to ₱3.2 billion. Sustaining its momentum in 2024, gross margin jumped from 19.0% in 9M2024 to 26.3% in 9M2025.

With the increases in other operating expenses and finance costs, the Company registered a net income of ₱501.1 million in 9M2025, lower by 12.8% YoY. Net profit margin nevertheless went up from 3.5% in 9M2024 to 4.1% in 9M2025, continuing the improvement in margins seen in full-year 2024 results. Megawide looks forward to continuous improvement in its margins over the medium-term, backed by growing revenues and well-controlled costs and expenses.

In relation to its leverage, the Company’s debt-to-equity ratio improved from 2.1x as of end-2024 to 1.9x as of end-September 2025, given a favorable combination of lower debt and higher equity. A portion of the Company’s debt was settled using the ₱3.5 billion in cash collected from parent Citicore Holdings Investment, Inc. (CHII) for partial settlement of outstanding advances.

Moving forward, Megawide expects further improvement in its leverage ratios. Management has disclosed its intention to strengthen its financial position by retiring a substantial portion of the Company’s debt over the next year.

05/01/2026

Rockwell Land Corporation’s Proposed Bond Issuance Receives Highest Credit Rating

Philippine Rating Services Corporation (PhilRatings) has assigned an Issue Credit Rating of PRS Aaa, with a Stable Outlook, to Rockwell Land Corporation’s (ROCK) proposed bond issuance amounting to ₱7.0 billion, with an Oversubscription Option of up to ₱3.0 billion. This will be the initial tranche of its ₱20.0 billion Shelf Registration.

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. PRS Aaa is the highest rating assigned by PhilRatings. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and corresponding Outlook take into account the following key considerations: (1) ROCK’s established brand name, supported by the diversification of product offerings and geographical expansion; (2) its solid management team and support from its Parent Company; (3) sustained growth in profitability; (4) strong liquidity position; and (5) conservative capital structure, even amid its recent expansion.

PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to ROCK and may change the rating and Outlook at any time, should circumstances warrant a change.

ROCK is a real estate company engaged in the development of residential and commercial projects that cater to the high-end and upper-mid markets. The Company has broadened its portfolio, expanding beyond its initial focus of high-rise condominium projects to offering mid-rise towers and horizontal projects. ROCK also launched its first provincial development in 2013, and has strategically shifted its focus to horizontal development projects outside Metro Manila, particularly in growing provincial areas, such as Pampanga, Laguna, Batangas, Cebu, and Bacolod. Additionally, ROCK ventured into the hospitality market with the launch of the Aruga Serviced Apartments.

With 30 years of developing real estate projects in the Philippines, ROCK has built a strong and reputable brand. Its growth over the past years was supported by product diversification, the strong take-up of its projects, and its ability to develop projects across numerous locations in Metro Manila and in growing provincial areas. From December 2024, ROCK launched three premium residential projects in provincial areas, banking on relatively more resilient demand for luxury projects and the residential sector outside the capital region. More residential units and leasable spaces are expected to be added to ROCK’s mixed-use communities. In line with this strategy, ROCK recently acquired a majority stake in Alabang Commercial Corporation, the owner and operator of Alabang Town Center (ATC). ATC is a retail and office center in Alabang, Muntinlupa, which sits on a 17.5-hectare (ha) land area and reportedly has around 500 retail and office tenants. In addition to this, the Company is also preparing to start construction of its first full-service hotel in Cebu next year and launch its second Power Plant Mall in Pampanga in 2027. Future growth will be supported by ROCK’s land bank of over 500 ha.

ROCK is led by a seasoned management team, many of whom have been with the Company for many years. Their leadership has steered Rockwell past global crises that disrupted global economies, such as the Asian Financial Crisis and the COVID-19 pandemic.

Nestor J. Padilla serves as ROCK’s Chief Executive Officer (CEO) since 1995, and a Director since 1997. Mr. Padilla also served as the President from 1995 to 2023. He vacated the President position in February 2023 following the passing of Ambassador Manuel M. Lopez to assume the role of ROCK’s Chairman. Succeeding Mr. Padilla as President is Valerie Jane L. Soliven. She has also been a Director and the Chief Operating Officer (COO) since 2023. Ms. Soliven has been with ROCK for more than 28 years. Prior to her appointment as President, she was the Company’s Chief Revenue Officer (CRO) and headed the Sales and Marketing team for more than 20 years.

As of end-September 2025, First Philippine Holdings Corporation (FPH) owned 86.6% of ROCK. FPH is a Philippine holding company owned by the Lopez Family. FPH has interests in power generation through First Gen Corporation (FGen), energy solutions through First Philippine Electric Corporation (First Philec), and construction through First Balfour, Inc. (First Balfour), among others. ROCK is seen to benefit from the support, synergies and leadership that the FPH Group provides.

ROCK’s profitability consistently improved in the past five years, with consolidated net income rising from ₱1.3 billion in 2020 to ₱4.1 billion in 2024. Such was equivalent to a compounded annual growth rate (CAGR) of 34.4%. Growth was driven by the sustained expansion of real estate sales which grew from ₱7.2 billion in 2020 to ₱14.6 billion in 2024. Lease income similarly grew over the period, backed by strong tenant sales and rental escalations. Its average share to total revenues from 2020 to 2024 was at 11.2%. ROCK’s top line growth has generally outpaced the increase in its costs and expenses, resulting in improvements in margins. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded from 33.6% to 39.3% over the same period. Net profit margin (NPM) notably grew from 11.3% in 2020 to 20.5% in 2024. Return on average assets (ROAA) likewise improved from 2.0% to 5.3%.

In the first nine months of 2025 (9M 2025), consolidated net income expanded by 13.1% year-on-year to ₱3.5 billion, backed by higher revenues from the Company’s high-end residential projects and lease income from commercial developments. Margins and returns likewise improved in 9M 2025.

ROCK expects to sustain its earnings growth going forward, led by the anticipated revenue generation from its newly launched and upcoming projects. Lease income will also prop up the Company’s top line. Margins and returns are likewise projected to remain at healthy levels.

The Company maintained sound liquidity levels, with its current ratio improving from 2.4x as of end-2020 to 3.2x as of end-2024. This was attributable to the Company’s growing inventory levels and its ability to generate cash from its operations. As of end-September 2025, ROCK’s current ratio remained more than ample at 3.0x. Furthermore, the Company’s capital structure remained conservative throughout the historical period. Debt-to-equity (DE) ratio stood at 0.9x as of end-September 2025. Rockwell intends to sustain its healthy liquidity position and conservative capital structure.

Mula sa amin sa PhilRatings, isang Manigong Bagong Taon!
31/12/2025

Mula sa amin sa PhilRatings, isang Manigong Bagong Taon!

It’s Christmas time! Maligayang Pasko sa inyong lahat!
25/12/2025

It’s Christmas time! Maligayang Pasko sa inyong lahat!

23/12/2025

Highest Rating Maintained for SMC Tollways’ Outstanding Bonds

Philippine Rating Services Corporation (PhilRatings) has maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for SMC Tollways Corporation’s (SMC Tollways) ₱35.0 billion outstanding bonds.

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. PRS Aaa is the highest rating assigned by PhilRatings. A Stable Outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and Outlook took into account the following key considerations: (1) major expressway operator under the San Miguel Group; (2) sustained growth in revenues and earnings, supported by robust demand for services; (3) conservative capital structure despite capital-intensive nature of business; and (4) more than ample liquidity backed by strong cashflow generation.

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 SMC Tollways and may change the rating at any time, should circumstances warrant a change.

Established on June 7, 2013, SMC Tollways is mainly dedicated to the rehabilitation, building, and development, as well as overseeing the continuous maintenance and operations, of the Skyway System—a key arterial road network connecting the northern and southern corridors of Metro Manila. The Company holds the investments in the Skyway System of San Miguel Holdings Corp. (SMHC), the infrastructure arm of one of the country’s largest and most diversified conglomerate, San Miguel Corporation (SMC).

Supported by the sustained growth in annual average daily traffic (AADT) for all vehicle classes, SMC Tollways’ revenues inched up by 4.5% to ₱21.2 billion in 2024. Revenue from toll operations continued to make up the bulk of total revenues, accounting for 98.1%. The uptick in revenues, complemented by well-managed costs and expenses, resulted in a 9.9% increase in earnings to ₱9.2 billion in 2024. With the foregoing, net profit margin (NPM) and return on average assets (ROAA) continued to improve to 43.6% and 8.6%, respectively.

In the first nine months of 2025 (9M2025), the expansion in the Company’s top and bottom lines was sustained. Revenues went up by 5.7% to ₱16.6 billion, while net income was slightly tempered by the surge in income tax expense, following the expiration of Skyway Stage 3’s (SS3) income tax holiday. Bottom line registered an increase of 1.5% to ₱7.4 billion. NPM slightly decreased from 46.4% in 9M2024 to 44.5% in 9M2025. ROAA, in contrast, inched up from 8.5% to 8.6%.

In terms of leverage, SMC Tollways’ interest-bearing debt decreased by 6.1% to ₱52.3 billion as of end-2024. Total equity, on the other hand, soared by 19.6% to ₱51.3 billion. Equity expansion was driven by continued plowback of earnings. As a result, debt-to-equity ratio improved from 1.3x as of end-2023 to 1.0x as of end-2024. Debt-to-capitalization ratio stood at 50.4% as of end-2024. As of end-September 2025, debt-to-equity ratio further improved to 0.8x, as higher equity on account of earnings retention was again coupled with lower debt levels.

Supported by the growth in earnings, cash from operating activities of the Company jumped by 15.6% to ₱18.9 billion in 2024. As internally generated cash was more than sufficient to cover investing and financing activities, cash and cash equivalents ballooned by 57.6% to ₱17.3 billion as of end-2024. Current ratio and acid test ratio were also more than ample at 2.5x and 1.4x, respectively, as of end-2024. In 9M2025, cash from operations marginally decreased by 4.7% to ₱13.0 billion. It was nevertheless still more than sufficient to cover funds used in investing and financing activities, resulting in a 20.8% increase in the cash balance to ₱20.9 billion as of end-September 2025. Liquidity ratios also further improved. Current ratio was more than ample at 3.0x, while acid test ratio stood at 2.0x.

23/12/2025

Haus Talk’s Maiden Bond Issuance Receives Strong Investment Grade Credit Rating of PRS A

Philippine Rating Services Corporation (PhilRatings) has assigned an investment grade Issue Credit Rating of PRS A, with a Stable Outlook, to Haus Talk, Inc.’s (Haus Talk; the Company) maiden bond issuance amounting to ₱1.0 billion, with an Oversubscription option of up to ₱1.0 billion.

Obligations rated PRS A have favorable investment attributes and are considered as upper-medium grade obligations. Although obligations rated ‘PRS A’ are somewhat more susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its financial commitments on the obligation is still strong. An Issue Credit Rating of ‘PRS A’ is considered an investment grade credit rating. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and the corresponding Outlook take into account the following key considerations:
1. Strong growth opportunity given its focus on underserved housing market segments in key growth areas within and around Metro Manila;
2. Able to sell-out its properties, although its size, scale and geographic presence are currently limited compared to much larger competitors;
3. Target market may be more vulnerable to economic downturns, albeit the Company recorded a strong collection performance and revenue growth during the pandemic;
4. Sustained earnings growth; and
5. Ample liquidity with a relatively conservative capital structure, albeit with rising debt levels to support growth in recent years.

PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to Haus Talk and may change the rating and Outlook at any time, should circumstances warrant a change.

Haus Talk is a real estate property company focused on the development of affordable housing to the socialized, economic or low cost, and the middle-market segments. Its residential developments are a mix of horizontal and vertical projects located in Rizal, Laguna, and select cities in Metro Manila.

To date, Haus Talk has completed 14 developments, predominantly located in Rizal and Laguna. Of these projects, 11 were completed pre-pandemic, and notably, all but one were fully-sold. Its ongoing developments likewise continue to enjoy strong market reception.

The cities where Haus Talk has an active presence are fast growing areas located relatively close to other cities and/or other major business districts. This makes the Company’s properties attractive to customers who want a balance in terms of affordability and proximity to urban centers. Moreover, its ongoing and upcoming projects are close to essential establishments, including hospitals, schools, churches, transportation hubs, and commercial centers. While Haus Talk develops mass housing, its developments also include amenities such as a clubhouse, basketball court, and bigger open spaces, among others.

Haus Talk prioritizes acquiring land which is already ripe for development. As such, the majority of the Company’s 67.0 hectares (ha) land bank are already earmarked for the development of multiple projects. In June 2025, the Company finalized the acquisition of the National Steel Corp.’s parcels of land totaling 14.0 ha in Antipolo, Rizal. Haus Talks intends to develop this land into a residential subdivision, with a supporting retail hub.

As a mass housing developer, Haus Talk is positioned to benefit from the persistent housing backlog in the country. As of end-March 2025, the national housing backlog reached 8.25 million units. This is expected to reach the 10-million mark by the end of 2028. The anticipated increase in the pool of potential home buyers in these segments could provide Haus Talk a steady customer base, thereby a sustained demand for its residential projects. Haus Talk may also leverage the government incentives available to developments in these segments, including income tax holidays (ITH). The Company’s flagship project, The Granary, has already been granted these incentives. Haus Talk intends to apply for similar benefits for its upcoming projects.

While the Company is positioned for steady long-term demand, its target market – lower-income and middle-income families – may be more vulnerable to economic shocks such as rising interest, inflation, and increased unemployment rate. These could affect potential homebuyers’ spending capacity, and access to financing, among others. Notwithstanding this, the Company performed well during the pandemic, with demand and collection efficiency reported to remain robust. PhilRatings notes, however, that the Company had relatively few active developments at the onset of the pandemic.

In comparison to other real estate companies rated by PhilRatings, Haus Talk recorded the least asset size and earnings, albeit high growth, in the previous years. Its geographic presence is likewise relatively limited. Its business was also solely on the sale of real estate and did not generate any recurring income.

The positive momentum of Haus Talk’s revenues and bottom line continued amid the COVID-19 pandemic in 2020. The growth was propelled by real estate sales which was the Company’s primary revenue source. From 2020 to 2023, real estate sales and net income recorded compound annual growth rates (CAGR) of 52.6% and 68.8%, respectively. Backed by the combination of the expansion in revenues and controlled increase in costs and expenses, net profit margins improved from 17.4% in 2020 to 23.1% in 2023. The return on average assets (ROAA) gradually rose from 1.6% in 2020 to 5.2% in 2023.

In 2024, top line continued to expand, with total revenues increasing by 34.7% to ₱1.4 billion. Net income peaked at ₱366.8 million in 2024, recording a significant growth of 51.2% from the previous year. Moreover, net profit margin improved to 26.0% and ROAA increased to 6.7%.

In the first nine months of 2025 (9M2025), total revenues were relatively flat, recording an uptick of 0.9%. Haus Talk ended the period with a 1.0% growth in net income amounting to ₱302.6 million in 9M2025. The tempered increase was mainly due to fewer project launches compared with the prior years. Haus Talk, nonetheless, has a handful of projects in its pipeline that is foreseen to contribute to revenue growth in the coming terms.

Since 2020, a significant portion of the Company’s capital requirements were funded by loans and borrowings. Debt level was on an uptrend and stood at to ₱2.5 billion as of end-September 2025. Nonetheless, leverage position remained relatively conservative, with the Company’s debt-to-equity ratio remaining below 1.0x since 2020. Haus Talk also maintained a comfortable liquidity position. The issuance of its maiden bonds will diversify Haus Talk’s capital structure.

Address

5F ALGO Center 162 L. P. Leviste Street, Salcedo Village
Makati
1227

Opening Hours

Monday 8:30am - 5:30pm
Tuesday 8:30am - 5:30pm
Wednesday 8:30am - 5:30pm
Thursday 8:30am - 5:30pm
Friday 8:30am - 5:30pm

Telephone

+63288123215

Website

http://bit.ly/PhilRatingsReports

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