MNTC debt paper gets highest rating

MANILA North Tollways Corp. (MNTC), operator of North Luzon Expressway, said its P7-billion debt securities were assigned the top rating by Philippine Rating Services Corp. (Philratings).

Philratings said in a statement that the bonds, which mature from 2020 and 2024, were rated PRS Aaa, indicating the company’s strong balance sheet.

Philratings noted that MNTC, a unit of businessman Manuel V. Pangilinan-led Metro Pacific Investments Corp., had ample liquidity to meet its obligations, an adequate capital structure, well-managed toll franchise and resilient demand for its toll services.

MNTC was incorporated in 1997 and began commercial operations in 2005. MNTC operates the 97.6-kilometer NLEx.

Last February, MNTC and the Bases Conversion and Development Authority (BCDA) executed a business agreement assigning to the private firm BCDA’s rights, interest and obligations relating to the management, operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEx).

Upon presidential approval of the Supplemental Toll Operation Agreement, SCTEx will soon be managed and operated by MNTC. With the integration of the SCTEx into MNTC’s portfolio of managed toll roads, MNTC will be the biggest toll road operator in the Philippines with an combined length of 191.5 km. Miguel R. Camus

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