MANILA, Philippines — Philippine Rating Services Corp. (PhilRatings) maintained its top credit rating of PRS Aaa for Energy Development Corp.’s P7 billion outstanding bonds.
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. PRS Aaa is the highest rating assigned by PhilRatings. The rating was also assigned a stable outlook, which means that the assigned issue credit rating is likely to remain unchanged in the next 12 months.
In issuing the rating, PhilRatings considered EDC’s leading position as a renewable energy company, both domestically and globally; strong parent company support and highly experienced management team, adequate cash flows to cover debt payments, conservative capital structure with a well-managed foreign currency exposure and a supportive economic and regulatory environment.
EDC is the largest vertically integrated geothermal developer in the world, operating from the steam field up to the power plant. It is likewise a leading renewable energy (RE) company, with business interests in geothermal, wind, hydroelectric and solar energy.
As of Sept. 30, 2019, the company’s total installed capacity was at 1,473.3 megawatts (MW), equivalent to 20.4 percent of the country’s aggregate installed capacity from renewable sources and 6.2 percent of the overall installed capacity.
EDC likewise accounts for 60.7 percent of the country’s total installed geothermal capacity, with a combined geothermal capacity of 1,179.3 MW as of the end of November.