{"id":9579,"date":"2014-05-11T18:39:38","date_gmt":"2014-05-11T10:39:38","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=9579"},"modified":"2014-05-11T18:39:38","modified_gmt":"2014-05-11T10:39:38","slug":"4-phl-entities-receive-further-upgrades-from-sp","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2014\/05\/11\/4-phl-entities-receive-further-upgrades-from-sp\/","title":{"rendered":"4 PHL entities receive further upgrades from S&P"},"content":{"rendered":"
\"The<\/a>
The entrance of NAPOCOR: National Power Corporation. Wikipedia photo<\/em><\/figcaption><\/figure>\n

 <\/p>\n

MANILA (PNA) -\u2013 Standard & Poor\u2019s (S&P) on Friday upgraded the ratings of three government-owned entities and a telecommunication company following the same decision on the country\u2019s credit rating.<\/p>\n

Ratings of the Power Sector Assets & Liabilities Management Corp. (PSALM) and National Power Corp. (Napocor) was upgraded to \u2018BBB\u2019 with stable outlook from \u2018BBB-\u2018, their ASEAN regional scale to axA from axA-, and the senior unsecured debt also to \u2018BBB\u2019 from \u2018BBB-.\u201d<\/p>\n

Rating of the Development Bank of the Philipines (DBP) was raised to \u2018BBB\u2019 with stable outlook from \u2018BBB-\u2018, ASEAN regional scale to axA\/axA-2 from axA-\/axA-2; senior unsecured to \u2018BBB\u2019 from \u2018BBB-\u2018, subordinated debt to \u2018BBB-\u201c from \u2018BB+\u2019 and junior subordinated to \u2018BB+\u2019 from BB.<\/p>\n

For Philippine Long Distance and Telephone (PLDT) company, raised was corporate credit lending to \u2018BBB+\u2019 with stable outlook from \u2018BBB\u201d, the ASEAN regional scale rating to axA+ from axA and the senior unsecured debt to \u2018BBB+\u2019 from \u2018BBB\u2019.<\/p>\n

These were made after the debt watcher further upgraded the Philippines\u2019 investment grade rating \u2018BBB\u2019 with stable outlook from \u2018BBB-\u2019, a year after it gave the country an investment grade rating.<\/p>\n

The credit rating agency considers PSALM and Napocor\u2019s stand-alone credit profiles as \u201cweak and heavily dependent on the support of the Philippine government.\u201d<\/p>\n

However, it explained that it upgraded the entities\u2019 ratings because on its opinion \u201cboth utilities are almost certain to receive timely and sufficient extraordinary government support in the event of financial distress.\u201d<\/p>\n

This assessment is based on the debt watcher\u2019s analysis that both companies play a critical role in implementing government reforms in the power sector and providing missionary electrification in the country; and these benefit from an integral link with the government, which fully owns both utilities and has control over key budgetary and strategic decisions.<\/p>\n

\u201dThe Philippine government also provides an irrevocable, unconditional, and timely guarantee on all debt obligations of PSALM and Napocor,\u201d it noted.<\/p>\n

Relatively, the debt ratings of DBP are in line with that of the country and S&P said the financial institution \u201cplays a critical public policy role in supporting the economic and social development of the Philippines and has an integral link to the government.\u201d<\/p>\n

\u201cTherefore, we see an “almost certain” likelihood that the government will provide timely and sufficient extraordinary support to DBP in the event of financial distress,\u201d it said.<\/p>\n

Ratings of PLDT, are still hindered by the debt watcher\u2019s transfer and convertability assessment on the country although its stand-along credit profile is still at \u201ca\u201d.<\/p>\n

\u201dWe believe PLDT benefits from its leading position in the domestic market, good business diversity, strong cash flows, and modest debt level,\u201d S&P said.<\/p>\n

It added that \u201cintense competition in the mature domestic cellular market and large dividend payouts of almost 100 percent temper these strengths. (PNA)\u00a0LAM\/JS\/UTB<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

  MANILA (PNA) -\u2013 Standard & Poor\u2019s (S&P) on Friday upgraded the ratings of three government-owned entities and a telecommunication …<\/p>\n","protected":false},"author":44,"featured_media":9671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,95],"tags":[3194,3139],"class_list":["post-9579","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-news-ph","tag-napocor","tag-sp","mauthors-philippines-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/9579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=9579"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/9579\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/9671"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=9579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=9579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=9579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}