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

We view First Pacific (FIRPAC) 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. The investment holding company has a reasonable track record. Its key assets include PLDT, Indofood and MPIC. The group's 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 has high transparency, with most assets (based on NAV) being listed. Our fundamental Credit Bias is “Stable” due to the reasonable performance of the subsidiary companies and FIRPAC's stated intention to reduce debt with proceeds from the sale of non-core assets. We view FIRPAC'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 abiding by government requirements 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.

  We view First Pacific (FIRPAC) 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. The investment holding company has a reasonable track record. Its key assets include PLDT, Indofood and MPIC. The group's 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 has high transparency, with most assets (based on NAV) being listed.   Our fundamental Credit Bias is “Stable” due to the reasonable performance of the subsidiary companies and FIRPAC's stated intention to reduce debt with proceeds from the sale of non-core assets.   We view FIRPAC'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 abiding by government requirements 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. 

First Pacific - Tear Sheet - Lucror Analytics

First Pacific Co

First Pacific - Tear Sheet - Lucror Analytics