NLEX Corporation, a subsidiary of Metro Pacific Tollways Corporation, has retained its highest Issue Credit Rating of PRS Aaa with a Stable Outlook from the Philippine Rating Services Corporation (PhilRatings) for its outstanding fixed-rate bonds worth P6.0 billion.
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 over the next 12 months.
PhilRatings said its rating and outlook for the NLEX bonds were assigned given the company's well-managed toll franchise, backed by a robust project pipeline, and the strong demand for its toll services, supported by the government's infrastructure push. It added that NLEX Corporation’s sustained revenue growth, healthy margins, and strong cash flows backed by sustained earnings were also taken into consideration.
NLEX Corp. is the concessionaire of the North Luzon Expressway (NLEX), Subic–Clark–Tarlac Expressway (SCTEX), and the NLEX Connector Road. As part of the largest toll road network in the country, NLEX Corp. manages crucial transportation links connecting regional capitals, economic zones, and tourist destinations across the Philippines.
In 2024, NLEX Corp. pursued additional projects aimed at expanding road capacity, such as the Candaba 3rd Viaduct. The company also intends to embark on NLEX Segment 8.2 – Section 1A and the NLEX Expansion Project Phase 3 in 2025. These initiatives are designed to improve the traffic flow, safety, and accessibility of the company’s toll roads, supporting increased vehicle traffic and economic growth in Central Luzon.
NLEX Corp. enjoys strong demand for its toll roads due to the lack of direct competition in central and northern Luzon. The only alternative, MacArthur Highway, is often congested and impractical. In 2023, traffic volumes on the company’s toll roads surpassed 2022 levels, reflecting a recovery in travel demand. The full opening of the NLEX Connector Road Magsaysay Avenue Interchange in 2024 and the Candaba 3rd Viaduct in December 2024 is expected to further increase traffic volume growth.
The government’s infrastructure push, highlighted by the Build, Better, More Program, is also expected to bode well for the company going forward. With P1.47 trillion of the government’s budget allocated for infrastructure in 2024 and 72.4 percent of its flagship projects focused on physical connectivity, PhilRatings said the company’s growth outlook remains strong.