Philippine Rating Services Corp. assigned a credit rating of “PRS Aaa” on the proposed P9.55 billion worth of fixed retail bonds of Aboitiz Power Corp.
PhilRatings issued the credit rating of PRS Aaa with a stable outlook. The bonds have an oversubscription option of up to P 4.55 billion.
Aboitiz Power’s bonds may have one to three series with tenors that may range from two, five, and seven year to be issued in the second or third quarter.
PhilRatings also maintained a credit rating of PRS Aaa and a stable outlook on Aboitiz Power’s outstanding P30.45 billion of bond issue.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” Philratings said in a statement.
PRS Aaa is the highest rating assigned by PhilRatings. The outlook is an indication of the possible direction of any rating change within a one-year period. It serves as a further refinement to the assigned credit rating for the guidance of investors, regulators and the general public.
A stable outlook means the rating is likely to be maintained or remain unchanged in the next 12 months.
PhilRatings assigned grade due to Aboitiz Power’s significant levels of cash flows and financial flexibility in relation to debt service requirements. The rater cited the company’s adequate capital structure, supported by the healthy increase in retained earnings, diversified portfolio, with good growth prospects, and its experienced management team.
PhilRatings said its ratings were based on available information and projections at the time it conducted the review.
“PhilRatings shall continuously monitor developments relating to Aboitiz Power and may change the rating at any time, should circumstances warrant a change,” it said.
This will be the fourth issuance of Aboitiz Power in relation to its three-year shelf registration of up to P 30 billion.
Aboitiz Power will use the proceeds from the bond sale to primarily reimburse equity infusions in AA Thermal Inc. to fund succeeding equity infusions in AA Thermal, and to finance equity contributions in Therma Power Inc., in relation to GNPower Dinginin Ltd. Co.’s construction of a 1,336-megawatt coal-fired power plant in Mariveles, Bataan.
