SM Prime Holdings Inc., said its planned P10-billion retail bond issuance has received a PRS Aaa rating from local debt rating firm Philippine Rating Services Corp. (PhilRatings).  
 
PhilRarings  also assigned a “stable” outlook for the ratings of the proposed and outstanding bonds.
 
Obligations rated PRS Aaa are of the highest quality with minimal credit risk under PhilRatings rule.  
 
The rating highlights the “extremely strong’ capacity to meet financial commitment on the obligation. PRS Aaa is the highest rating assigned by PhilRatings. 
 
A stable outlook  indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
 
PhilRatings said the rating reflects the following key considerations: SM Prime’s strong financial profile;  its solid brand equity and very good operational track record; SM Prime’s well-diversified portfolio, with components that complement each other; and its continuous aggressive construction and expansion of development projects leading to significant growth going forward.
 
“PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments in relation to SM Prime and may change the ratings at any time, should circumstances warrant a change,” it said.
 
The bond is part of the company’s planned P60 billion bond issuance in the next three years to fund capital expenditures. 
 
SM Prime said the bonds will be a fixed-rate retail that will be filed under the Securities and Exchange Commission’s shelf-registration rule.