Philippine Rating Services Corp. (PhilRatings) has maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for D&L Industries, Inc.’s P2-billion outstanding fixed-rate bonds.

PhilRatings said on Thursday that the obligations rated PRS Aaa are of the highest quality with minimal credit risk. A Stable Outlook indicates the rating will likely remain unchanged over the next 12 months.

The company said the rating reflects D&L’s strong market position, diversified product lines and customer base, innovation-driven offerings, consistent revenue generation, and manageable debt levels. 

“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” PhilRatings said.

D&L operates across four segments: food ingredients, oleochemicals and other specialty chemicals, specialty plastics, and consumer products ODM. 

It serves both niche and mainstream markets, with 34 percent of its revenues in the first quarter coming from exports. The company aims to raise export contribution to 50 percent.

From January to March, revenues rose 61.6 percent year on year, while net income increased by 10.2 percent to P681.1 million. 

However, net profit margin dropped to 4.8 percent from 7.0 percent due to rising manufacturing and commodity costs, particularly for coconut oil. D&L expects margins to recover once prices stabilize.