Manila Water gets top credit rating

MANILA, Philippines - Ayala-led utility firm Manila Water Co. Inc. has obtained the highest credit rating of PRS Aaa from the Philippine Rating Services Corp. due to its strong capacity to meet its financial obligations vis-a-vis other Philippine corporations.

In issuing the corporate credit rating, PhilRatings took into account  Manila Water’s strong liquidity position and financial flexibility,  adequate capitalization,  proactive management, sustained profit performance, competent technical staff with a proven track record and the company’s aggressive efforts to expand its service areas.

PhilRatings also considered the delays being experienced by the company in its rate rebasing exercise with the Metropolitan Waterworks and Sewerage System (MWSS).

A corporate credit rating is an over-all measure of creditworthiness for a one-year period prospectively and is not tied to a particular debt issue.

Manila Water provides water and wastewater services for the East Zone of the metropolis, comprisingMakati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, and most parts of Manila and Quezon City, as well as Rizal; Angono, Antipolo, Baras, Binangonan, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay and Teresa.

The company has also expanded its reach beyond the East Zone and has subsidiaries with projects in Laguna, Pampanga, Boracay and Cebu. It also has ventures outside the country, particularly in Vietnam.

Since it first began operations in 1997, Manila Water has been able to consistently meet and surpass its regulatory and financial targets. Its management has also been very proactive in dealing with issues relating to the water industry, such as the development of new water sources, as well as the management of non-revenue water (NRW) levels.

As of end-March this year, Manila Water’s NRW was at 11.4 percent.

In the first quarter, Manila Water grew its net earnings by 28 percent to P5.4 billion with income margins  also improving to  37 percent in 2012.