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

    SEC approves Cirtek's P3.5-B preferred share offering

    Published By Manila Bulletin

    The Securities and Exchange Commission (SEC) has approved the planned P3.5 billion preferred shares offering by Cirtek Holdings Philippines Corporation.

    In its meeting on October 26, the Commission En Banc resolved to render effective 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).

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  • Jan 13, 2021

    Cirtek outlook rated stable

    Cirtek outlook rated stable

    Philippine Rating Services Corp. (PhilRatings) assigned an issuer credit rating of PRS A (corp.)

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  • Aug 17, 2021

    Holdings firm raises P1.4B thru SRO

    Published by Malaya

    Cirtek Holdings Philippines Corp. said it has successfully raised P1.37 billion in funding through a stock rights offer (SRO) where existing shareholders subscribed to 249.44 million shares at P5.50 per share.

    The SRO entitled a shareholder to buy one share from the pool of shares made available for every 1.68 Cirtek shares it owns. The company also included in the share sale one detachable warrant for each shares bought, which its holder can use to buy additional Cirtek shares at a price of P5.50, starting on the 12th month after the stock rights offer and until the 36th m...

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