The Philipping Rating Services Corp (PhilRatings) has cited Aboitiz Equity Ventures with its highest PRS Aaa rating for its P8 billion high quality bond issue with minimal credit risk.
It said in a statement AEV’s capacity to meet its financial commitment on the obligation is extremely strong.
“The credit rating for Aboitiz Equity Ventures Inc.’s outstanding bond issue of P8 billion is maintained at PRS Aaa with a stable outlook,” PhilRatings said.
AEV attained the highest rating with its sustainable recurring cash flows, which was supported by the buoyant growth in the operating performance of its subsidiaries.
It also maintained a strong balance sheet, characterized by a growing asset and investment portfolio, a highly liquid position and conservative capitalization; ample financial flexibility to support business expansion; robust growth prospects for its business mix; and strong management team.
The bond issue will finance the company’s infrastructure, transport and utilities-related projects.
The company recently joined the bidding for the P123-billion Laguna Lakeshore Expressway Dike project under the Team Trident or Trident Infrastructure and Development Corp., a consortium of quad-partnership of AEV, Ayala Land Inc., SM Prime Holdings Inc., and Megaworld Corp.
It is also eyeing to bid for the Light Rail Transit 2 operation and maintenance project.
The company is studying various public and private partnership (PPP) projects, which consist of bundled airport projects including the P20.26-billion Bacolod-Silay Airport and P30.40-billion Iloilo Airport; as well as the P2.34 -billion New Bohol Panglao Airport, P14.62-billion Laguindingan Airport and the P40.57-billion Davao Airport.
The company, through its joint venture firm Apo Agua Infrastructura Inc., recently signed
a P10-billion deal to supply 300 million liters per day of treated bulk water to the Davao City Water District (DCWD).
For the full year 2014, AEV’s net income declined by 13 percent to P18.4 billion from P21 billion a year ago on slower incomes of its power and banking segments, which take up bulk of its revenues.
Incorporated in 1989, AEV is the holding company of the Aboitiz Group of Companies, having businesses in power distribution, power generation and retail electricity supply (AboitizPower); financial services and portfolio investments (UnionBank); food manufacturing (Pilmico Foods); and real estate (AboitizLand). Kristyn Nika M. Lazo