SAAVEDRA-LED Citicore Energy REIT Corp. (CREIT) has sustained its PRS Aa+ credit rating with a “stable” outlook from credit rating agency Philippine Rating Services Corp. (PhilRatings).
The company also maintained the same rating for its ASEAN Green Bonds, it said in a media release on Tuesday.
Citing a statement from PhilRatings, CREIT said the rating was based on its fully occupied portfolio of green assets, reputable shareholders, strong profitability with high margins, 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…,” said CREIT President and Chief Executive Officer Oliver Tan.
“We intend to continue as a platform that empowers investments, ensuring that our debt instruments are trusted by creditors and investors,” he added.
According to PhilRatings, 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 indicating that the rating is expected to remain unchanged over the next 12 months.
Issue credit ratings of PRS Aa, meanwhile, are of high quality and subject to very low credit risk, with the obligor’s capacity to meet financial commitments deemed very strong.
In February 2023, CREIT listed its oversubscribed maiden ASEAN Green Bond offering amounting to P4.5 billion.
The proceeds were used to acquire value-accretive properties, expanding the company’s green asset portfolio to its current 7.1 million square meters.
CREIT said its current land parcels form part of the expansion pipeline of its sponsor, Citicore Renewable Energy Corp., which aims to achieve a five-gigawatt capacity within five years.
CREIT is the Philippines’ first real estate investment trust focused on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the country.
At the local bourse on Tuesday, shares in the company closed unchanged at P3.20. — Sheldeen Joy Talavera
