Alsons Consolidated Resources Inc. said Friday it sustained its issuer credit rating of PRS Aa minus (corp.) with a stable outlook from the Philippine Rating Services Corp. in relation to its P3-billion commercial paper issuance.
PhilRatings said a company with a PRS Aa rating “has a strong capacity to meet its financial commitments relative to other Philippine corporates.”
The rating agency assigns a stable outlook when a rating is likely to be maintained or to remain unchanged in the next twelve months.
PhilRatings cited several reasons for maintaining Alsons’ credit rating, including the commencement of the Wholesale Electricity Spot Market in Mindanao and the upcoming completion of the Mindanao-Visayas Interconnection Project that “may possibly broaden the company’s market reach to Luzon and Visayas.”
Alsons is Mindanao’s first private sector power generator, providing electricity to over eight million people across 14 cities and 11 provinces.
Philratings also cited Alsons’ “planned expansion projects which will further diversify its generation mix,” “the company’s ability to establish joint ventures with strong partners for particular projects,” and its “ample liquidity, supported by positive operating cash flows.”
Alsons listed P620 million from the first tranche of the company’s P3-billion CP program with the Philippine Dealing and Exchange Corp. in December 2022.
This is the third CP program for the publicly-listed company of the Alcantara Group which had its first issuance in 2018.
Proceeds from the issuance will be used primarily for general working capital purposes.
The company is now focused on building up its renewable energy capacity in the next few years, with eight run-of-river hydroelectric power facilities in the pipeline.
Alsons is constructing the 14.5-megawatt Siguil hydro power plant in Maasim, Sarangani province which is expected to begin operations before the end of the year.
Two renewable energy facilities are slated for development, including a hydro and solar power project in Zamboanga del Norte with a potential combined capacity of up to 37.8 MW, and a hydro power project in Bago River in Negros Occidental with a planned capacity of up to 42 MW.
Alsons chairman and president Nicasio Alcantara said renewable energy sources would eventually comprise at least half of the company’s long-term energy mix.
“In the coming years, renewable energy will comprise at least half of ACR’s energy portfolio. The steadfast support of partners like you has helped make all this possible while allowing us as well to provide investors with an attractive alternative investment outlet thru our CP issuances,” Alcantara said.