Aboitiz Power’s retail bonds get top marks

Philippine Rating Services Corp. (PhilRatings) gave Aboitiz Power Corp.’s proposed retail bond issuance an issue credit rating of PRS Aaa—the highest rating assigned by the credit watcher.

Aboitiz Power is set for an issuance of P5 billion, with an oversubscription option of up to P5 billion. The bonds will be issued in two tranches maturing in seven and 12 years, respectively.

The proceeds will be used to partially finance new power generation projects, to boost working capital, and for other “general corporate purposes.”

“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 credit watcher said the rating took into account a number of key considerations, such as Abotiz Power’s strong profitability in relation to debt servicing in recent years; conservative capital structure which may accommodate additional debt and is supported by healthy growth in retained earnings; diversified portfolio with good growth prospects and; experienced management team. Riza T. Olchondra