THE proposed P20-billion fixed rate bond issue of San Miguel Corporation (SMC) subsidiary Global Power Holdings Corp. has received a credit rating of “PRS Aaa” from Philippine Rating Services Corp. (PhilRatings).
Obligations rated “PRS Aaa” indicate that the company has a strong capacity to meet its financial commitments relative to that of other Philippine corporations. It is the highest rating assigned by PhilRatings.
The rating assigned is likely to be maintained or to remain unchanged over the next 12 months, PhilRatings said.
The bases for the rating include Global Power’s dominant market position with a solid platform for expansion; the strong parent company support and synergies derived from the SMC group; its long-term off-take contracts with customers which provide stability in terms of revenues and cash flows; and outstanding legal issues that may have an impact on the company’s operations.
Global Power is one of the country’s largest power companies with a diversified portfolio of power assets consisting of coal, natural gas and hydro.
It currently has a combined capacity of 3,063 megawatts (MW) which represents about 14.7 percent of the power supply of the National Grid, 19.8 percent of the Luzon Grid and 5 percent of the Mindanao Grid.