AboitizPower secures top credit rating for P2-billion bond offering
ABOITIZ POWER Corp. secured the highest rating for the first tranche of its proposed bond offering, Philippine Rating Services Corp. said.
In a statement, PhilRatings said it assigned a “PRS Aaa” rating with a stable outlook for AboitizPower’s P2-billion bonds, with an oversubscription option of up to P1 billion.
Obligations rated “PRS Aaa” are of the highest quality with minimal credit risk, PhilRatings said, noting that the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
The stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
The bonds, with a tenor of 10 years, is part of the company’s shelf registration of up to P30 billion. Proceeds from the issuance will be used to finance an investment into a company partly owned by AboitizPower.
In assigning the rating and outlook, PhilRatings considered Aboitiz Power’s “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.”
PhilRatings likewise maintained a top credit rating with a stable outlook for AboitizPower’s outstanding P10-billion retail bonds.
AboitizPower, one of the leading power generation and distribution companies in the Philippines, has an attributable net sellable capacity of 2,975 megawatts (MW) at the close of 2016 from accumulated interests in hydroelectric, geothermal, solar, coal-fired and oil-fired power plants.
AboitizPower also has interests in eight distribution utilities serving over 917,000 customers at end-December last year.
In the first quarter of 2017, AboitizPower posted a 13% drop in net income to P4.4 billion, due to one-time foreign exchange losses, coupled with the near-flat electricity sales.
Shares in AboitizPower lost five centavos or 0.13% to close at P39.75 each on Tuesday. -- Krista Angela M. Montealegre