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Thursday, March 28, 2024

Converge gets highest rating for P10-b bonds

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Converge ICT Solutions Inc. said Tuesday it obtained the highest credit rating from Philippine Ratings Services Corp. for its planned maiden bond issuance worth P5 billion, with an oversubscription option for another P5 billion.

The Converge maiden bond offering was granted a “PRS Aaa rating with stable outlook” due to the internet provider’s formidable position in the fixed broadband market following its spectacular growth in recent years and its strong cash flow that provided the company flexibility in its network rollout.

“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” said PhilRatings in its Rating News report. A stable outlook means the rating would likely remain unchanged for the next twelve months.

Converge chief executive Dennis Anthony Uy said the funds to be generated from the proposed bond issue would be used to support the capital expenditures of the company.

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