Alsons’s CP’s accorded ‘stable outlook’ rating
By Myrna M. Velasco – Updated May 2, 2020, 8:02 AM
from Manila Bulletin
Alsons Consolidated Resources, Inc. of the Alcantara group has been rated “PRS A plus,” which entails “stable outlook” credit rating as rendered by the Philippine Rating Services Corporation (PhilRatings) on its commercial papers issuance.
The company recently carried out the second tranche ₱1.0-billion CP issue for its ₱2.5-billion commercial papers program registered with the Securities and Exchange Commission.
Alsons noted that earlier this year, it also re-issued ₱694 million which was part of its first tranche ₱1.5- billion commercial papers offer in the capital market.
As explained by PhilRatings, the credit rating of PRS A plus (corp.) would mean that “the company has an above average capacity to meet its financial commitments relative to other Philippine corporates.”
On proceeds from the CP issue, it has been stipulated that this will “provide interim funding to help the company’s expansion into the renewable energy (RE) sphere.”
PhilRatings indicated that among the factors it had assessed were anchored on “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” as well as on the Al-cantara group’s “ability to establish joint ventures with strong partners for particular projects.”
The rating agency added the “stable outlook” is often bestowed on a company “when a rating is likely to be maintained or to remain unchanged in the next 12 months.”
Alsons Power has previously reported that its power plants continue to operate “despite the ongoing quarantine of many areas in the country,” – including communities in Mindanao which is the core market of the generated electricity of the group’s power facilities.
As emphasized by ACR Executive Vice President and Chief Executive Officer Tirso Santillan Jr., “our operations are ongoing and we continue to dispatch power to our various customers in Mindanao.”
And despite the temporary drawbacks hurled by the coronavirus pandemic, he said their pipelined greenfield power projects are on track – including the 14.5-megawatt Siguil hydropower project in Sarangani province; as well as the 105-MW San Ramon coal-fired power venture in Zamboanga City.
According to the company, the Siguil hydropower plant is expected to begin commercial operations in 2022 and will provide power to Sarangani province, General Santos City and key municipalities of South Cotabato.
“Even with the current quarantine, we do not foresee a major delay in the targeted commencement of operations for our Siguil and San Ramon projects,” he stressed.
