MANILA, Philippines - Philippine Rating Services Corp. maintained the highest credit rating for Energy Development Corp.'s outstanding retail bonds.
In a statement, PhilRatings said it has kept the issue credit rating PRS Aaa for the following outstanding retail bonds of EDC: P8.5
billion retail bonds due on June 4, 2015; P3.5 billion retail bonds due on December 4, 2016; P3 billion retail bonds due on May 3, 2020 and P4 billion retail bonds due on May 3, 2023.
PRS Aaa is the highest credit rating on PhilRatings’ long-term issue credit rating scale. This means the obligations are of the highest quality with minimal credit risk, and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
PhilRatings cited EDC's core business which continues to generate significant revenues, with profitability expected to improve further within the next two years.
Also cited was EDC's ample cash flows and financial flexibility to service debt obligations, particularly the P8.5 bonds falling due in 2015.
PhilRatings also noted EDC’s market leadership, as well as its experienced management team and technical personnel.
The rating also considers the Philippines' energy demand situation, as well as EDC's new plants and international expansion which are expected to be drivers for future growth.
EDC is the largest producer of geothermal energy in the Philippines, with a combined geothermal capacity of 1,129.4 Megawatt (MW) as of December 31, 2013.