The Philippines’ first renewable energy REIT, Citicore Energy REIT Corp. (CREIT or “the Company”), retains its strong credit ratings from the Philippine Rating Services Corporation (PhilRatings) since 2022. The company is given the Issuer Credit Rating of PRS Aa plus (corp.) with a Stable Outlook, while its ASEAN Green Bonds maintains the Issue Credit Rating of PRS Aa plus with a Stable Outlook.
Philratings, the country’s pioneer domestic credit rating agency, said in a statement that CREIT ratings are based on the following considerations: “(i) CREIT is well-positioned to benefit from the country’s growing renewable energy needs with its unique and fully occupied portfolio of green assets; (ii) the Company’s reputable shareholders; (iii) its strong profitability with high margins; and (iv) its sound financial position and more than satisfactory liquidity.”
“Sustaining the PRS Aa+ credit rating from PhilRatings, for both the company as an issuer and the company’s maiden ASEAN Green Bond, is a testament to the company’s strong financial position and profitability as the foremost Energy REIT in the Philippines, delivering superior yields from its green asset portfolio. We intend to continue as a platform that empowers investments, ensuring that our debt instruments are trusted by creditors and investors,” said Oliver Tan, CREIT President and CEO.
According to the agency, the Issuer Credit Rating signifies the “overall creditworthiness of a company, evaluating its ability to meet all its financial obligations within a time horizon of one year” with the Stable Outlook rating expected to remain unchanged in the next 12 months. Issue Credit Ratings rated PRS Aa, meanwhile, are of high quality and are subject to very low credit risk, with the obligor’s capacity to meet its financial commitment very strong.
CREIT’s oversubscribed outstanding ASEAN Green Bonds, amounting to PhP4.5 billion, was issued in February 2023. Proceeds were used to acquire value-accretive properties to grow the company’s green asset portfolio to its current 7.1 million square meters - cementing its status as the country’s largest renewable energy landlord.
Tan further stated that the continued issuance of strong ratings reflects the agency’s confidence in CREIT’s unique business model. A 100% occupancy leased out to solar operators and developers and operating in a crisis-proof industry has allowed CREIT to consistently declare above-prescribed dividends since its listing in the stock market in February 2022.
CREIT’s current land parcels form part of the expansion pipeline of its sponsor, Citicore Renewable Energy Corporation, with its 5GW in 5 years goal in full speed. ###
