Aboitiz Power debt issues rated PRS Aaa

ABS-CBN News

Posted at Feb 05 2009 12:02 PM | Updated as of Feb 05 2009 08:35 PM

Local credit rating agency Philippine Rating Services Corp. (PhilRatings) has assigned the highest possible rating to two of Aboitiz Power Corp.'s (APC) debt issuances.

APC's proposed corporate retail bond issue of up to P3 billion as well as its P4 billion corporate notes offer last December were assigned ratings of PRS Aaa. Obligations rated with such are of the highest quality of minimal credit risk, indicating the strong capacity of the debtor to meet its financial commitments.

In assigning the PRS Aaa rating to APC's notes and bonds, PhilRatings said it considered the company's "consistent robust operating profit from a diverse portfolio of operating subsidiaries, solid track record of the management team in power and other industries, the positive outlook for energy producers as well as APC’s capacity to compete effectively and efficiently in a more competitive power industry."

APC's previously issued notes carried terms of five and seven years. The company was planning to use proceeds to fund planned acquisitions and other corporate purposes.

Late last month, APC filed with corporate regulators its application for the registration of fixed-rate corporate bonds with an aggregate principal amount of up to P1.5 billion and an additional amount of up to P1.5 billion to cover any over-subscription.