By Lenie Lectura- September 3, 2019
ABOITIZ Power Corp. has secured the
highest credit score for its P10-billion bond sale.
Local credit rater Philippine
Ratings Services Corp. (Philratings) assigned an issue credit rating of PRS
Aaa, with Stable Outlook, to the power firm’s third tranche of its proposed
issuance of P10-billion fixed-rate retail bonds filed with the Securities and
Exchange Commission (SEC) last August 23 under its P30-billion shelf
registration. The Third Tranche has an oversubscription option of up to P2
billion and a tenor of seven years.
“Obligations rated PRS Aaa are of
the highest quality with minimal credit risk, an indication of the extremely
strong capacity of the obligor to meet its financial commitment on the
obligation,” said Philratings.
With a stable outlook, the
rating is likely to be maintained or to remain unchanged in the next 12 months.
Philratings said the ratings and
outlook were assigned based on the significant levels of cash and cash flows in
relation to debt service requirements; adequate capital structure supported by
healthy growth in retained earnings; diversified portfolio with good growth
prospects; and experienced management team.
AboitizPower’s outstanding
P10.2-billion bonds issued last September 10, 2014, also maintained its PRS Aaa
and Stable Outlook rating.
The power firm had said last year
that proceeds would be used to refinance loans, repay its short-term loan
obligations and for general corporate purposes.
The power firm’s current
attributable power capacity is 3,200 MW. Of this, 1,200 MW is renewable energy.
It has set a target energy capacity of 4,000 MW by 2020.
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