Cirtek retains PRS A rating

Manila Bulletin by James A. Loyola

Philippine Rating Services Corporation (PhilRatings) has maintained its “A” rating for Cirtek Holdings Philippines Corporation.

In a statement, the ratings firm said it has assigned Cirtek an Issuer Credit Rating of PRS A (corp.), with a Stable Outlook.

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

The company, however, is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.

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

PhilRatings said the rating and outlook were assigned to Cirtek given the firm’s manageable liquidity and capitalization levels and 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.

It also too into consideration Cirtek’s strong customer base of well-established and global companies, diversified in terms of region and industries.

PhilRatings also cited Cirtek’s improved profit margins despite lower revenues, attributable to the company’s cost management efforts; and the highly competitive and cyclical industry that is susceptible to adverse changes in various economies and characterized by the presence of larger international players.

Cirtek is a fully integrated global technology company focused on wireless communication. It is an independent, complete solutions provider for subcontract manufacturing of semiconductor devices and

provides a broad range of assembly and testing services for various product applications and industries. It is primarily engaged into the design, development and delivery of the wireless industry’s antenna solutions; the manufacture of valued-added, highly integrated technology products; and the manufacture and sales of semiconductor packages as an independent subcontractor for outsourced semiconductor assembly, test and packaging services.