Financial performance and credit risk of selected sea freight firms in the Philippines

• Main Authors: Ramos, Charmaine Nicole, Santos, Janina B.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Shipping > Credit ratings > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8842
• Institution: De La Salle University

Due to the nature of the freight industry and its strong cash flow, the banking industry remains receptive in their call for financing for their high rate of investment or capital spending. However, due to the high volatility of the maritime shipping industry, lenders have grown cautious with the said industry. This study will focus on the credit risk management of the freight industry in the Philippines. Specifically, this study will look into the financial performance of the freight industry and how it affects their credit scores. In order to achieve its objectives, the authors of this research employed both quantitative and qualitative. It is quantitative due to the analysis of financial report (gathered from the S.E.C and survey) that will result to the financial ratio and statistics. Whereas the qualitative part of this research is to give interpretation and to further understand the significance of the financial ratios and statistics that has been derived from the financial ratios and other materials gathered for the purpose of this study. Moreover, this study will find the correlation between the credit scoring and financial ratios (as a determinant of financial performance). This part of the research will discuss the evaluation method of the lenders and a further descriptive explanation of the relationship of the credit scoring and financial performance. As a result of the random effects-panel regression, it is concluded by this study that the independent variables as a whole is significant to the credit score. Thus, the financial performance of each company has significant effects to its credit worthiness.