Power generation firm SMC Global Power Holdings Corp. has secured the top credit rating from local credit watcher Philippine Rating Services Corp. for its proposed P15-billion retail bond offering.
The proposed bonds were given the rating of “PRS Aaa,” meaning the bonds are of the “highest quality with minimal credit risk.”
In a statement, PhilRatings said it had given this rating after identifying the following key strengths of SMC Global Power: Good market standing despite its relatively short operating history; the strong parent company support and synergies derived from the San Miguel group of companies, with a team of experienced professionals managing the company; and sound cash generating ability from operations.
SMC Global Power has filed a registration statement at the Securities and Exchange Commission, seeking authority to offer fixed rate bonds with five, seven and 10 year tenors.
SMC Global Power, together with its subsidiaries, is one of the largest power companies in the Philippines, accounted for 22.2 percent of the Luzon grid and 16.5 percent of the total installed capacity of the national grid as of end-June.