Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

<p>We view First Pacific as “Low Risk” on the LARA scale. This is primarily due to the group’s strong assets and tight control over key investee companies, which ensure reliable dividend streams to service debt. First Pacific is an investment holding company with a decent historical record. It has three key assets: PLDT, Indofood and Metro Pacific Investments Corp. The asset concentration is offset by the strength of these companies, which are: [1] leaders in their respective market segments; and [2] stable non-cyclical businesses. Leverage is moderate (measured as Net Debt at Holdco/Market Value of Assets). The investment portfolio’s transparency is high, with most assets (based on NAV) being listed.Our fundamental Credit Bias on First Pacific is “Negative” given the challenging operating environment for most of key assets, as well as the increase in the holdco's leverage profile. That said, We view favourably management’s focus on cash interest coverage and debt reduction. Its disclosure and corporate communications are adequate. Transparency is decent, as the majority of its assets (in terms of value) are listed.We view First Pacific’s corporate governance as “Moderate” on the LAGA scale, given: [1] the holdco and investee companies’ long history of public listings; [2] a solid key shareholder record, with the Salim family honouring its debt obligations and cooperating with government demands during the Asian Financial Crisis; and [3] strong management, with consistent and clear communication and disclosure. In addition, the Salims were one of the first families to hire professional managers to run their companies. These positives mitigate the fact that the Board composition could be improved, as well as the large number of related-party transactions.Our fundamental Credit Bias on First Pacific is “Negative”, given the challenging operating environment for most of its key assets, as well as the increase in the holdco's leverage. That said, we view favourably management’s focus on cash-interest coverage and debt reduction. First Pacific's disclosure and corporate communications are adequate. Transparency is decent, as the majority of the group's assets (in terms of value) are listed.We maintain our "Hold" recommendation on the FIRPAC curve, which seems fairly valued relative to peers. The FIRPAC Notes have held up very well amid the sell-off in the Asian HY market.. </p>

We view First Pacific as “Low Risk” on the LARA scale. This is primarily due to the group’s strong assets and tight control over key investee companies, which ensure reliable dividend streams to service debt. First Pacific is an investment holding company with a decent historical record. It has three key assets: PLDT, Indofood and Metro Pacific Investments Corp. The asset concentration is offset by the strength of these companies, which are: [1] leaders in their respective market segments; and [2] stable non-cyclical businesses. Leverage is moderate (measured as Net Debt at Holdco/Market Value of Assets). The investment portfolio’s transparency is high, with most assets (based on NAV) being listed.Our fundamental Credit Bias on First Pacific is “Negative” given the challenging operating environment for most of key assets, as well as the increase in the holdco's leverage profile. That said, We view favourably management’s focus on cash interest coverage and debt reduction. Its disclosure and corporate communications are adequate. Transparency is decent, as the majority of its assets (in terms of value) are listed.We view First Pacific’s corporate governance as “Moderate” on the LAGA scale, given: [1] the holdco and investee companies’ long history of public listings; [2] a solid key shareholder record, with the Salim family honouring its debt obligations and cooperating with government demands during the Asian Financial Crisis; and [3] strong management, with consistent and clear communication and disclosure. In addition, the Salims were one of the first families to hire professional managers to run their companies. These positives mitigate the fact that the Board composition could be improved, as well as the large number of related-party transactions.Our fundamental Credit Bias on First Pacific is “Negative”, given the challenging operating environment for most of its key assets, as well as the increase in the holdco's leverage. That said, we view favourably management’s focus on cash-interest coverage and debt reduction. First Pacific's disclosure and corporate communications are adequate. Transparency is decent, as the majority of the group's assets (in terms of value) are listed.We maintain our "Hold" recommendation on the FIRPAC curve, which seems fairly valued relative to peers. The FIRPAC Notes have held up very well amid the sell-off in the Asian HY market.. 

First Pacific - Tear Sheet - Lucror Analytics

First Pacific Co

First Pacific - Tear Sheet - Lucror Analytics