SOUTH LUZON Tollway Corp. (SLTC) maintained the top credit rating on its outstanding bond issue.
In a statement, Philippine Rating Services Corp. (PhilRatings) said the debt watcher assigned a PRS Aaa rating on the P7.3-billion fixed-rate bonds of SLTC.
“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.
The debt was also given a stable outlook, indicating that the ratings are likely to be maintained or remain unchanged in the next 12 months.
In keeping its triple-A rating, PhilRatings said the company is “supported by the very good potential for growth of SLTC in line with the continuous economic expansion of Metro Manila and key Southern provinces which are serviced by its toll franchise; and the company’s healthy liquidity, which is backed by stable cash flows from toll collections.”
SLTC is the concessionaire of the South Luzon Expressway (SLEx), a 36.1-kilometer (km.) toll road which currently runs from Alabang, Muntinlupa to Sto. Tomas, Batangas.
SLEx is considered a key logistical backbone to the Southern corridor of Metro Manila, connecting major economic centers in Metro Manila to the growth centers of Cavite, Laguna, Batangas, Rizal and Quezon.
The rising economic activity in the provinces which are being served by the company’s franchise is expected to support the continued viability of SLTC’s toll system going forward, sustaining the increasing trend in SLEx’s annual average daily traffic (AADT), PhilRatings said.
Light vehicles accounted for the bulk of vehicles that used SLEx from 2012 to 2016 on the back of increasing housing development and robust consumer socioeconomic activity in the areas surrounding the toll road. Heavy vehicles, however, registered the fastest compound annual growth rate (CAGR), driven by the strong economic activity in the south.
AADT stood at 337,164 last year, a jump of 7.3% from the volume of 314,279 last year. This translates to an overall compounded annual growth rate of 9.2% for 2012-2017. — Krista Angela M. Montealegre
