Cirtek debt paper gets high rating

Jan 13, 2021

Cirtek debt paper gets high rating

Business Mirror By VG Cabuag

Laguna-based Cirtek Holdings Philippines Corp. (CHPC) has secured a high rating from a local credit ratings agency for its three-year, shelf registration of its commercial papers worth P2 billion.

The company secured a PRS A with a stable outlook from the Philippine Rating Services Corp.

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, according to the local ratings firm.

A stable outlook is an indication as to the possible direction of any rating change within one year and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators and the general public.

The said ratings were based on manageable liquidity and capitalization levels, the Cirtek group’s established track record in the industry, its strong customer base of well-established and global companies, diversified in terms of region and industries; and improved profit margins despite lower revenues.

The ratings, however, included “highly competitive and cyclical industry that is susceptible to adverse changes in various economies and characterized by the presence of larger international players.”

“PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed,” it said.

Cirtek, a company led by the Tiu group, started out as a semiconductor firm based in Laguna, but transformed itself into a fully integrated global technology company that expanded its market on wireless communication.

“Members of CHPC’s senior management team have been around for over 35 years and have weathered economic ups and downs and political crises in the Philippines. Through this time, it was able to grow its operations amidst a highly competitive and cyclical industry with larger international players,” the ratings firm said.

  • Oct 27, 2021

    Cirtek aims to raise ₧3.5B from preferred shares offer

    Published by Business Mirror

    The Securities and Exchange Commission (SEC) has approved Cirtek Holdings Philippines Corp.’s public offering of up to P3.5 billion worth of preferred shares.

    In its en banc meeting, the agency approved the registration statement of Cirtek covering 50 million preferred B-2 Subseries C and D shares at an offer price of P50 per preferred share, with an oversubscription option of up to 20 million preferred shares.

    The preferred shares will be listed and traded on the Main Board of the Philippine Stock Exchange (PSE).

    The Laguna-based manufacturer expects to net P3.44 ...

    Read more
  • Dec 17, 2020

    Quintel Wins New Telco Contract under 
Master Purchase Agreement

    Quintel Wins New Telco Contract under 
Master Purchase Agreement

    Cirtek Holdings Philippines Corp. (“Cirtek”), appoints BDO Unibank, Inc. (“BDO”) a

    Read more
  • Jan 12, 2021

    Cirtek to hike production

    Cirtek to hike production

    Cirtek Electronics Corp. will scale-up its production by 20 percent this year resulting to improved revenues.

    Read more