AboitizPower’s P10-billion bond sale to pay loans gets highest rating

By Lenie Lectura – September 3, 2019
from Business Mirror

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.