Credit Rating and Investors Services Philippines Inc. (CRISP) has affirmed its top rating on Villar-led property developer Vista Land and Lifescapes Inc. with a stable outlook.
In assigning the “AAA” rating for Vista Land, the ratings firm noted the company’s sustained leadership in the low-cost and affordable housing market, strong financial performance, strong management team and a successful operating model.
Vista Land was able to maintain its leadership position in the low-cost and affordable housing segments after building an estimated 300,000 homes since 1977 in 36 provinces, 98 cities and municipalities throughout the Philippines.
CRISP also mentioned the company’s ability to sustain its project launches, which are mostly in the low and affordable segments outside Metro Manila.
It said Vista Land has an operating model that can successfully replicate large-scale housing community projects.
The ratings firm also cited Vista Land’s strong financial performance in terms of revenue, earnings before interest, depreciation and amortization and net income growth.
The ratings firm believes that Vista Land’s leadership in the low-cost and affordable housing market segments will be sustained as the economy continues to grow and the demand for housing, particularly in the company’s market segment, expands.
“We welcome the affirmation of CRISP of our ‘AAA’ rating, getting it for the first time in 2014 is one thing, but sustaining it is another. This is again proof that we have put in place a company with a strong management team and a business model that can withstand challenges in a very competitive real estate industry,” said Manuel Villar Jr., the company chairman.
“Affirmations like this fuel our drive to deliver quality and affordable homes to an increasing number of Filipinos and provide a quality lifestyle to buyers via our Communicities—integrated urban developments combining residential developments, lifestyle retail, prime office space and leisure components,” he said. Vista Land’s board recently approved a P20-billion float in debt paper. The company said it will submit documents with the Securities and Exchange Commission, and the debt will be placed under the agency’s shelf registration program.
The company plans to issue the debt paper in tranches for the next three years. It will, however, issue an initial P5 billion in the coming months.
“The series A bonds due seven years from issuance, and series B bonds due 10 years from issuance,” it said.