Engineering and construction firm Megawide Corp. obtained a double A credit rating with a stable outlook from local credit watcher Philippine Rating Services Corp. for a planned P4 billion bond offering.
The PRS Aa rating given to bilyonaryo Ed Saavedra’s Megawide means that the company has a “strong capacity’ to meet its financial commitments relative to that of other Philippine corporations. It differs from the highest (triple A) rating on Philratings’ credit scale only to a small degree.
Philratings said the sale of fixed-rate debt was assigned a credit rating of PRS Aaa with a stable outlook, which meant a low chance of default.
A Stable Outlook, on the other hand, indicates that such rating is likely to remain unchanged in the next 12 months.
In assigning the rating, Philratings took into account Megawide’s solid experience in the construction industry, along with vertically integrated operations, notable expansion projects in recent years and relatively high debt level on a consolidated basis due to the capital-intensive nature of the project companies’ operations.
Philratings also considered the recovering economy amid declining COVID-19 cases and increasing vaccination rate.
The local credit watcher said Megawide has built a solid reputation as one of the top companies in the Philippine construction and infrastructure sector. Since 2008, Megawide completed over 85 projects, with a total contract value amounting to ₱142 billion as of the third quarter of 2021.
Megawide has an AAAA contractor’s license from the Philippine Contractors Accreditation Board (PCAB) – the highest classification and category for a construction company – which qualifies them to bid for private projects with no limits on contract value.
It maintains a Large B classification for government registration, allowing it to participate in large-scale infrastructure projects.