Moody's confirms Quezon Power

Moody's Investors Service said it confirmed Quezon Power (Philippines) Ltd. Co.'s B3 debt rating.

The outlook is stable.

Moody's said that the confirmation of the rating reflects the weak financial position of the project's off-taker - Meralco, despite the sound operating and financial profiles of Quezon. While Meralco has successfully drawn a $228 million seven-year secured debt facility to refinance its debt obligations, its financial position remains fragile, overshadowed by various key issues.

Any adverse development regarding these issues could profoundly and negatively impact Meralco's creditworthiness. Nevertheless, Moody's believes there is a tendency for Meralco to continue honoring its obligations to Quezon in order to generate income for the former's debt servicing, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.