S&P lifts Meralco outlook to stable

Standard & Poor's said it revised the outlook on its ratings on Manila Electric Co. (Meralco) to stable from negative.

The B- long-term issuer credit rating on Meralco was affirmed, the agency said, adding that the outlook revision reflects an improvement in the regulatory environment, especially the resolution of a pending dispute on the unbundling of tariffs charged by Meralco and in the company's liquidity position, which should result in adequate cash flow to service its indebtedness in the near term.

The outlook revision also factors in the resolution of the noncompliance of loan covenants and improvements in the company's debt maturity profile, which point toward a somewhat improved financial flexibility, S&P noted.

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