By Joann Santiago
MANILA, (PNA) — Moody’s Investors’ Service on Thursday upgraded to investment grade from Ba1 the senior unsecured rating of National Power Corporation and the senior unsecured bond rating of Power Sector Assets & Liabilities Management Corporation (PSALM).
The upward revision of the entities’ ratings were made after the debt watcher made the similar decision on the country’s credit rating.
“The Baa3 senior unsecured bond rating reflects the Philippine government’s unconditional and irrevocable guarantee for NPC’s rated long-term bonds,” Mic Kang, a Moody’s Vice President and Senior Analyst, said in a statement.
The debt watcher said NPC has transferred 99.9 percent of its rated dollar-denominated bond to PSALM including a US$ 300 million bond due in 2028 and US$ 160 million due in 2016.
Similarly, Kang said the upgrade on PSALM’s ratings “are underpinned by its distinct policy role and its close integration with the government.”
“The government has provided unconditional and irrevocable guarantees for debt issued by PSALM and transferred from National Power Corporation,” he said.
Moody’s upgraded the country’s credit rating to Baaa3 with positive outlook from Ba1 on projection that the domestic economy can sustain its strong economic performance, on-going fiscal and debt consolidation, and political stability.
This is the third investment grade rating of the domestic economy after receiving its first-ever last March from Fitch Ratings and from Standard and Poor’s (S&P) last May.
Also, this is the 17th positive ratings action the country received since the assumption of the Aquino administration in the second half of 2010.