Megawide obtains ‘PRS Aa’ rating for planned P5-B bond issuance

MEGAWIDE Construction Corp. said it has obtained a “PRS Aa” issue credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings) for its planned P5-billion bond issuance.

The “PRS Aa” rating indicates obligations of high quality and low credit risk, with the obligor demonstrating very strong capacity to meet its financial commitments, the company said in a statement on Monday.

The company’s proposed bond issuance consists of a P4-billion base offer with an oversubscription offer of up to P1 billion.

Megawide will use the proceeds from the base offer to refinance the company’s existing debt obligations and for general corporate purposes. The oversubscription allotment will be reserved for business development opportunities.

The company said that a stable outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings also kept the “PRS Aa” rating on Megawide’s P4-billion outstanding rated bonds.

The ratings considered Megawide’s experience in the construction industry along with vertically integrated operations that complement the government’s infrastructure projects; and the company’s expansion projects in recent years.

In 2023, Megawide recorded a P269-million consolidated net income, a reversal of the P1.87-billion consolidated net loss in 2022, led by the growth of its construction business. The company’s consolidated revenue increased by 26% to P18.6 billion.

Megawide is a listed construction company engaged in various infrastructure projects such as the Malolos-Clark Railway and the Metro Manila Subway.

The company is also involved in property development through its subsidiary PH1 World Developers, Inc.

On Monday, Megawide shares were unchanged at P3 apiece. — Revin Mikhael D. Ochave