By James A. Loyola
Aboitiz Power Corporation (AboitizPower) is planning to raise up to P12 billion from the issuance of 7-year bonds for the repayment of the company’s short-term loan obligations and for general corporate purposes.
The firm is planning to issue bonds worth P10 billion with an oversubscription option of up to P2 billion. This will be the third issuance of AboitizPower in relation to its three-year Shelf Registration of up to P30 billion.
Philippine Rating Services Corporation (PhilRatings) assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, for the proposed bond issue. It also maintained the same rating for AboitizPower’s outstanding P23.2-billion bonds.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. A stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said it gave the top rating to AboitizPower because of the firm’s significant levels of cash flows and financial flexibility in relation to debt service requirements.
It also took into consideration AboitizPower’s adequate capital structure, supported by the healthy increase in retained earnings; diversified portfolio, with good growth prospects and; its experienced management team.