ABOITIZ Power Corp. on Tuesday told the stock exchange that its fixed-rate retail bonds received the highest credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings).
The PRS Aaa rating was assigned to the company’s proposed issuance worth P10 billion, the third and last tranche of its P30-billion bonds registered under the shelf registration program filed with the Securities and Exchange Commission (SEC) on March 1, 2021.
The third tranche is comprised of up to P7 billion with an oversubscription option of up to P3 billion. The credit rating given to it means the debt obligation is of the highest quality and carries minimal credit risk based on PhilRatings’ long-term issue credit rating scale.
PhilRatings also gave AboitizPower’s bonds a stable outlook, which means the rating is most likely to be maintained in the next 12 months.
The credit rating agency noted the following key rating factors it used to assign the ratings to AboitizPower’s bonds: diversified portfolio with good growth prospects; experienced management team; sustained financial recovery, and sufficient liquidity levels, supported by continued strong cash flow generation.
On Jan. 11, the energy company sought approval from the SEC for the issuance of the P10-billion bonds as it eyes the public offering in the first quarter of this year.
The proceeds of the bonds will be used to refinance the company’s previously issued bonds and to fund the construction of future renewable energy projects.
At the local bourse on Tuesday, AboitizPower gained 90 centavos or 2.91% to close at P31.80 apiece. — Marielle C. Lucenio