Citicore Energy REIT Corporation’s (CREIT) planned issuance of up to P4.5 billion in Green Bonds has been assigned a issue credit rating of PRS Aa plus by Philippine Rating Services Corporation (PhilRatings).
The commercial Real Estate Investment Trust (REIT) platform of the Citicore Group is looking to issue Green Bonds worth P3.0 billion, with an oversubscription option of up to P1.5 billion.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.
A Stable Outlook, on other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings also assigned an Issuer Credit Rating of PRS Aa plus (corp.), with a Stable Outlook, to CREIT.
An Issuer Credit Rating is an opinion on the general and overall creditworthiness of the company, evaluating its ability to meet all its financial obligations within a time horizon of one year.
A company rated PRS Aa (corp.) differs from the highest rated (PRS Aaa) corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
PhilRatings said the ratings and corresponding Outlook take into account CREIT’s unique portfolio of renewable energy REIT assets that enjoy stable full occupancy from lessees with cycle-resilient operations.
It also considered the firm’s reputable Sponsors, strong profitability with high margins, and sound financial position and significant flexibility for expansion.
CREIT is particularly focused on the renewable energy space, which is poised for growth given the continuously growing demand for electricity and the government’s push to expand the country’s renewable energy capacity.
Its property portfolio currently consists of a solar power plant and six land assets which are leased to solar power plant operators. At present, all the lessees are likewise members of the Citicore Group.
They have nevertheless secured long-term offtake agreements (covering 95 percent of total installed capacity) with the government and various established entities, supporting revenue stability moving forward.
If, in the future, CREIT is able to tap lessees from outside the Group, such will lead to further diversification in its client base.
Click to read more: CREIT’s P4.5-B Green Bonds get double A+ rating – Manila Bulletin (mb.com.ph)