Cirtek outlook rated stable

Jan 13, 2021

Cirtek outlook rated stable

Malaya Business Insight

Philippine Rating Services Corp. (PhilRatings) assigned an issuer credit rating of PRS A (corp.), with a stable outlook, for Cirtek Holdings Philippines Corp. (CHPC).

This is in relation to the company’s three-year shelf registration for commercial papers (CPs) of up to P2 billion.

A company rated PRS A (corp.) has an above average capacity to meet its financial commitments relative to that of other Philippine corporates.

The rating and outlook were assigned given the following key considerations: manageable liquidity and capitalization levels; the Cirtek Group’s established track record in the industry, supported by a strong and experienced management team that has navigated the Group through economic cycles, crises, and industry challenges; CHPC’s strong customer base of well-established and global companies, diversified in terms of region and industries; improved profit margins despite lower revenues, attributable to the company’s cost management efforts; and highly competitive and cyclical industry that is susceptible to adverse changes in various economies and characterized by the presence of larger international players.

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