Contact Information

Cebu Holdings, Inc.
20/F Ayala Center Cebu Tower
Bohol Street, Cebu Business Park
Cebu City, Cebu 6000
Tel: (63 32) 888 3700

Cebu Holdings’ outstanding bonds maintain highest credit rating

Monday, May 16, 2016

THE Philippine Rating Services Corp. (PhilRatings) maintained its PRS Aaa credit rating for Cebu Holdings Inc.’s outstanding bonds with an amount of P5 billion due in 2021.

PhilRatings has likewise assigned a stable outlook for the rating for CHI’s outstanding bonds.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitments 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 rating reflects the following key considerations: CHI’s sustained profitability; its solid links with and support from Ayala Land, Inc. (ALI), complemented by the competent and experienced management team of CHI; the company’s strong competitive position given its diversified portfolio; as well as the positive prospects for Cebu.

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 Cebu Holdings and may change the rating at any time, should circumstances warrant a change.

Cebu Holdings develops, markets and manages real property. It was incorporated on Dec. 9, 1988 and publicly listed at the Philippine Stock Exchange (PSE) in 1994. The company was established with the vision to transform the urban landscape of Cebu and help realize its economic potential.

Cebu Holdings is the one of the biggest real estate companies in Cebu City, which operates across several business units (residential, commercial, shopping centers and corporate business), and it is through these investments that Cebu Holdings has been able to sustain and grow its operations amid stiff competition in the real estate industry.

The company is able to leverage on its solid linkage with and support from its shareholder, Ayala Land, Inc. (ALI). On March 11, 2016, its parent company, ALI, increased its stake in CHI. ALI’s stake in the company went from 56.4 percent to 66.9 percent given the purchase of shares from First Metro Investment Corp. (FMIC), with the shares valued at around P1.20 billion.

Through the years, Cebu Holding’s profitability has been consistently stable. In 2014, the company’s consolidated revenues amounted to P2.3 billion, growing by five percent from the P2.2 billion recorded in 2013.

This continued growth was attributed to the higher leasing/rental income from Ayala Center Cebu and e-Bloc Towers, as well as the sale of condominium units. The upward trajectory in revenues was sustained in 2015, with revenues at P3.7 billion. This was 63.1 percent higher compared to that for the previous year.

Return on average equity and return on average assets also improved to 14.40 percent and 35.83 percent, respectively. Financial targets set earlier were surpassed in 2015. (SUN STAR CEBU)