D&L Industries Inc. said Monday it kept the top issuer credit rating of ‘PRS Aaa’, with a stable outlook from Philippine Rating Services Corp. for its P5-billion outstanding fixed-rate bonds.
PRS Aaa is the highest rating assigned by PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. This means the obligor’s capacity to meet financial commitment on the obligation is extremely strong.
PhilRatings considered the company’s strong market position in the industries that it is engaged in, diversification of products offered and markets served and innovation-driven specialty products protect the company from keen competition and ensure continued demand from customers.
“D&L continues to enjoy a solid market position in its four principal businesses—namely, food ingredients, oleochemicals and other specialty chemicals, specialty plastics and consumer products original design manufacturer,” PhilRatings said.
“The company has organically grown with the domestic industries it serves, with its businesses reportedly being either the country’s top market player or a close second in each of its respective industries,” it said.
PhilRatings said the company enjoys good relationship with customers because of its track record and expertise in business.
PhilRatings said D&L also remained profitable despite prevailing market headwinds and has been able to generate cash-flow and manage debts.
It said that as D&L’s products are well diversified in terms of their applications in various industries and their target markets, the company is able to balance out of developments across business segments.
“The benefit of such was highlighted in the shift of consumer preference amid the COVID-19 pandemic, where the lower sales volumes recorded for specialized and discretionary products were counterbalanced by the stronger demand for basic commodities,” the rating agency said.
D&L issued the P5-billion fixed-rate bonds in 2021 to fund the construction of a new manufacturing facility in Batangas province.