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The Lugtu family’s Asialink Finance Corp. has been given an issuer credit rating of PRS A plus (corp.) with a stable outlook by Philippine Rating Services Corp. (PhilRatings).
PhilRatings noted that Asialink, reportedly one of the fastest-growing financing companies in the Philippines with 192 branches nationwide as of July 2024, will use the assigned issuer credit rating for its future fundraising efforts.
A company rated ‘PRS A’ has an above-average capacity to meet its financial commitments relative to that of other Philippine corporates.
However, PhilRatings said the company is “somewhat susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.” The “plus” further qualifies the assigned rating.
A stable outlook, on the other hand, means the rating is likely to remain unchanged in the next 12 months.
PhilRatings said that in assigning the rating and its outlook, it took into account factors such as Asialink’s experienced shareholders and management team, and continuous growth of its branch network and loan portfolio.
Also taken into consideration is the company’s strong earnings generation, backed by sustained loan expansion, and its more-than-satisfactory loan portfolio quality.
Asialink offers unsecured and secured credit facilities that cater to the financial needs of businesses, particularly small and medium enterprises (SMEs) and individuals, without engaging in quasi-banking (QB) functions.
Moving forward, the company plans to also grow and diversify its funding sources, in line with expansion.
Asialink’s management is supported by a team of experienced professionals with technical expertise in and understanding of the industry, but PhilRatings notes that decision-making remains with the Lugtu family, given the family’s 80.3-percent ownership stake in Asialink.
The support of the company’s shareholders to key management has been a significant factor in the continuing growth and expansion of Asialink.
To support its growth, Asialink has been aggressively expanding its branch network across greater Manila area, northern Luzon, Visayas, and Mindanao in the last three years.
The company’s branch network significantly grew from 86 branches as of end-September 2021 to 192 branches as of July 2024.
Moving forward, the company plans to further expand its presence through additional brick-and-mortar branches in key municipalities and cities within the next two to three years.
