Maynilad Water Services, Inc. has retained its top rating of PRS Aaa, with a Stable Outlook, from the Philippine Rating Services Corp. (PhilRatings) for its outstanding blue bonds amounting to ₱15 billion.

Obligations rated PRS Aaa are considered of the highest quality with minimal credit risk, indicating that the firm’s capacity to meet its financial commitments is extremely strong. A Stable Outlook means the rating is likely to remain unchanged over the next 12 months.

PhilRatings noted that the assigned rating and outlook take into account Maynilad’s exclusive right to provide water and wastewater services in its concession area, its seasoned management team with strong regulatory expertise and solid parent company support, its sustained profitability and sufficient debt coverage, and its improved financial flexibility alongside continuous cash collections from customers.

Maynilad is the exclusive provider of water and wastewater services in the West Zone of the Greater Metro Manila area, spanning a concession area of 540 square kilometers that encompasses 17 cities and municipalities.

In June 2025, the Economy and Development Council, chaired by President Ferdinand Marcos, approved a 10-year extension of the company’s concession agreement, moving its expiration from July 31, 2037, to Jan. 21, 2047. With this extension, the term of the concession agreement now aligns perfectly with its 25-year legislative franchise under Republic Act No. 11600.

As a utility provider, Maynilad enjoys relatively stable demand and consistent cash collection, as customers prioritize basic needs even during regulatory or economic disruptions.

In 2025, Maynilad’s top line grew by 9.4 percent to ₱36.6 billion, driven by approved tariff adjustments and a steady number of billed connections.

The company also reduced its average non-revenue water (NRW) to 34.9 percent during the year, a significant improvement from 39.9 percent in 2024. This NRW reduction generated savings on key operating costs, thereby boosting operating income.

Similarly, Maynilad’s net income expanded by 19.1 percent to ₱15.2 billion in 2025. Interest coverage based on EBIT and the debt service coverage ratio also remained more than sufficient at 9.8 times and 4.5 times, respectively, as of end-2025.

Maynilad sustained this growth momentum into the first quarter of 2026, with its top line growing by 6.2 percent year-on-year (YoY) to ₱9.1 billion, and net income rising by 10.3 percent YoY to ₱4 billion. (James A. Loyola)