The proposed P2-billion debt issuance of Alsons Consolidated Resources Inc. received a “PRS A plus (corp.)” rating with a stable outlook from Philippine Rating Services Corp.
The P2-billion new commercial paper issue is part of the P3 billion that Alsons plans to issue and list within the year, pending approval from the Securities and Exchange Commission.
Alson’s previous CP issuance of up to P2.5 billion which was registered with the SEC in 2018 was also assessed by PhilRatings with a similar rating grade.
The “PRS A plus (corp.)” rating means the company has an above average capacity to meet financial commitments relative to other Philippine corporates.
“We are glad that PhilRatings has demonstrated anew its confidence in ACR with a ‘PRS A plus’ rating for our new CP program. We have once more deemed it favorable to tap the short-term capital markets for our working capital needs as we continue to pursue power projects that we hope will contribute to the economic recovery of our country… ,” Alsons deputy chief financial officer Philip Sagun said in a statement Friday.
Among the factors cited by the credit rating agency as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power” and Alsons’ “ability to establish joint ventures with strong partners for particular projects.”
The “stable outlook” means the rating is likely to be maintained or to remain unchanged in the next 12 months.
Alsons is building a P4.5 billion, 14.5-megawatt run-of -river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani province, the company’s foray into renewable energy.
The hydropower plant is expected to begin commercial operations by 2022.
Alsons is also developing the P16 billion,105-MW base load coal-fired power plant of San Ramon Power Inc. in Zamboanga City, which is slated to begin operations by 2024.
“For the long-term, the company is slated to focus on renewables with at least seven more run-of-river hydroelectric plants in various stages of development,” the company said.
The next two hydro facilities in the pipeline are the 22-MW Siayan (Sindangan) hydroplant in Zamboanga del Norte and the 42-MW Bago hydro-plant in Negros Occidental—the company’s first power venture outside Mindanao.