Credit rating agency Philippine Ratings Services Corp. (PhilRatings) said Monday it is closely monitoring Del Monte Philippines Inc. (DMPI) after its US affiliate Del Monte Foods Holdings Limited (DMFHL) filed for Chapter 11 bankruptcy.
PhilRatings said it is assessing DMPI, whose P645.9-million bonds are maturing in October 2025. These bonds currently hold a top credit rating of PRS Aaa with a stable outlook from PhilRatings.
Del Monte Pacific Limited (DMPL), the parent company, previously said the bankruptcy pertains only to DMFHL and would not affect DMPI, which remains operational and financially stable.
DMPI settled P5.8 billion in obligations that matured on Oct. 30, 2023.
PhilRatings said it is actively assessing any developments within the Del Monte Group.
“PhilRatings has also reached out to its key officer contact in DMPI regarding the potential financial implications of these recent events on the company,” it said.
“The company has maintained/stated that the bankruptcy proceedings of DMFHL will not negatively impact DMPI’s operations, its relationships with local banks and access to financing,” it said.
DMPI and DMPL earlier clarified that neither has guaranteed any of DMFHL’s loans or those of its subsidiaries, and therefore have no contingent liabilities tied to the U.S. business.
PhilRatings also noted that DMPI has shown strong recovery in recent months. In fiscal year 2024, the company’s net income dropped 30 percent to P2.6 billion, largely due to decreased US shipments and higher costs. However, in the first nine months of fiscal year 2025, net income surged 85.3 percent to P3.5 billion.
Full-year revenues for fiscal year 2025 rose 14 percent to P44.2 billion, driven by strong fresh and packaged pineapple exports. It reported a 40-percent increase in earnings before interest, taxes, and amortization (EBITDA) to P8.6 billion.
DMPI remains the Philippine market leader in packaged pineapple, tomato sauce, spaghetti sauce and ready-to-drink fruit beverages (excluding foil pouches).
