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LISTED food ingredients and oleochemicals producer D&L Industries, Inc. has kept the highest credit rating for its P2-billion outstanding fixed-rate bonds from the Philippine Rating Services Corp. (PhilRatings).

PhilRatings affirmed the PRS Aaa credit rating with a stable outlook for D&L’s P2-billion outstanding fixed-rate bonds, the company said in a disclosure to the local bourse on Thursday.

PRS Aaa is the highest rating given by PhilRatings and is assigned to obligations with minimal credit risk and to companies with an “extremely strong” capacity to meet financial commitments.

A stable outlook is assigned when the rating is expected to remain unchanged over the next 12 months.

PhilRatings said the credit rating reflects D&L’s strong market position and the diversification of its products and markets. The company aims to increase the share of export sales to 50%.

“The company is able to service not only specialized but also more basic products, which broadens its presence in different consumer markets. The company’s revenue sources are likewise geographically diverse, with a substantial portion of revenues coming from its export business,” it said.

PhilRatings also cited D&L’s specialty products, strong revenue generation, and manageable debt levels as reasons for maintaining the rating.

“The unique characteristics of D&L’s products require strong research and development capabilities. Most of these products are customized according to the specific needs of customers. This ensures continued demand for the company’s services and has helped in building long-standing client relationships that span many years,” it said.

“Additionally, significant capital expenditures are required for new market entrants to compete in the same industry and to build facilities capable of producing such specialized products. These factors provide D&L with a level of protection against new and emerging market players,” it added.

D&L shares declined by 0.39% or two centavos to P5.05 apiece on Thursday. — Revin Mikhael D. Ochave