EDC keeps highest credit rating for P7-B bonds

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ENERGY Development Corp. (EDC) maintained the highest credit rating for its P7-billion outstanding bonds, a local debt watcher said on Thursday.

Philippine Rating Services Corp. (Philratings) said the energy firm secured anew a PRS Aaa credit rating for its retail bonds, with P3 billion set to mature on May 3, 2020 and the remaining P4 billion due on May 3, 2023.

In addition, the outstanding debt also has a stable outlook, meaning that the rating is not likely to change in the next 12 months.

Philratings took into account EDC’s leading position as a renewable energy firm and adequate cash flows in coming up with the assessment.

EDC’s total installed generating capacity was at 1,457.7 megawatts by the end of 2016, comprising 20.9% of the country’s total installed capacity from renewable sources and 6.8% of the overall installed generating capacity.

In geothermal energy production, EDC leads the sector with an installed geothermal capacity of 1,168.8 MW, equivalent to 61% of the country’s total. The company also has investments in hydro, wind, and solar, operating a joint wind and solar farm in Burgos, Ilocos Norte with a capacity of 156.9 MW.

Philratings said the company’s medium to long-term, off-take agreements also provide the company with stable and predictable cash flows.

“Combined energy sales from bilateral contracts and the Wholesale Electricity Spot Market (WESM) amounted to 8,337.2 gigawatt-hours (GWh, 97.7% of total), generating P33.5 billion in revenues in 2016,” according to Philratings.

EDC’s recurring attributable profit climbed 11% to P5.2 billion in the first half of 2017, rising on the back of higher energy sales of Unified Leyte plants and the reduction in the Bacman plant’s exposure to the electricity market.

Shares in EDC rose seven centavos or 1.23% to close at P5.75 apiece at the Philippine Stock Exchange on Thursday. – Arra B. Francia