PhilRatings reaffirms Megawide’s P9-B bonds, citing strong earnings and massive project pipeline

Philippine Rating Services Corp. (PhilRatings) has reaffirmed its PRS Aa rating with a Stable Outlook on Megawide Construction Corp.’s P9 billion bonds, pointing to solid earnings momentum and a growing infrastructure portfolio.

PRS Aa is one of the highest scores on PhilRatings’ scale, indicating very low credit risk and a very strong capacity to meet obligations.

PhilRatings said the decision reflects Megawide’s brand strength, synergies from vertical integration, and diversification into housing, airports, and mass transport projects. 

Its bullish assessment comes as Megawide, controlled by tycoon Edgar Saavedra, pushes ahead with the Metro Manila Subway CP-104 package, the Caticlan Airport terminal project, and the Cavite Bus Rapid Transit Phase I.

The company’s order book reached P41.5 billion by March 2025 after landing P17.2 billion worth of new contracts in 2024 and P2 billion more in early 2025. 

Net income doubled in 2024 to P538.5 million, while Q1 2025 earnings rose 14.1 percent year-on-year to P209.2 million, supported by real estate and landport growth.

PhilRatings said its outlook means the bond rating is expected to stay unchanged over the next year, subject to ongoing monitoring.  

—Edited by Miguel R. Camus