Alcantara-led Alsons Consolidated Resources, Inc. (ACR) said it has received a “PRS A+” issuer credit rating with a stable outlook from the Philippine Rating Services Corporation (PhilRatings) for the planned first tranche of its commercial papers program this year.
In a statement, the Alcantara-led listed firm said it is aiming to list and issue the first tranche or P2 billion of the commercial papers program of up to P3 billion within the year, once it secures the approval of the Securities and Exchange Commission.
A PRS A+ credit rating, according to PhilRatings, is an assessment that shows the company’s above-average capacity to meet its financial commitments relative to other firms. A “stable outlook” is assigned when a rating is likely to be maintained or to remain unchanged in the next twelve months.
PhilRatings said ACR received an A+ rating on the back of a positive growth outlook for the Mindanao region, which is expected to increase demand for power. It also cited the company’s “ability to establish joint ventures with strong partners for particular projects.”
“We have once more deemed it favorable to tap the short-term capital markets for our working capital needs as we continue to pursue power projects that we hope will contribute to the economic recovery of our country, by helping create new jobs and stimulate the local economies in our project locations and in the areas where we operate,” ACR Deputy Chief Financial Officer Philip Edward B. Sagun said in a statement.
ACR, a private sector power generator based in Mindanao, has four power facilities with an aggregate capacity of 468 megawatts (MW).
The company’s net profit in the nine months ending September climbed nearly seven times to P360.6 million.
ACR said that its previous CP issuance of up to P2.5 billion in 2018 was also given a similar A+ rating by PhilRatings.
Shares of ACR jumped 3.84 % to finish at P1.35 apiece on Friday. — Angelica Y. Yang