Aboitiz Power IOUs get triple-A rating

The planned issuance of Aboitiz Power Corp. of up to P12 billion in seven-year, fixed-rate retail bonds earned a “Aaa” rating, with a stable outlook, from Philippine Ratings Services Corp.

Citing a statement from PhilRatings, AboitizPowers said in a regulatory filing the rating meant that the paper had minimal credit risk, an indication of the extremely strong capacity of the issuer to meet its financial commitment on the obligation.

Also, a stable outlook means that the rating is likely to be maintained or to remain unchanged in the next 12 months.

AboitizPower said the rating and outlook were assigned based on the company’s significant levels of cash and cash flow in relation to debt service requirements; adequate capital structure supported by healthy growth in retained earnings; diversified portfolio with good growth prospects, and experienced management team.

Additionally, PhilRatings maintained the “Aaa” rating and stable outlook for AboitizPower’s outstanding P10.2 billion in bonds that were issued in September 2014.

The planned issuance would be the third tranche for a P30-billion debt securities program under shelf registration with the Securities and Exchange Commission.

AboitizPower earlier said proceeds from the offering would be used to repay short-term loan obligations and for general corporate purposes.

Expected to be made available to the general public in the fourth quarter this year through listing at the Philippine Dealing and Exchange Corp., the third tranche will consist of a primary offer of up to P10 billion with an oversubscription option of up to P2 billion.