S&P: Meralco view to positive

S&P said it revised the outlook on Manila Electric Co. (Meralco) to positive from stable.

The agency also said it affirmed the company’s long-term corporate credit rating at BB+ and Asean regional scale rating at axBBB+.

The company is expected to further consolidate its cash buffer and maintain a cautious balance sheet, even during a time of high investments, sustained returns to shareholders and regulatory uncertainty, S&P explained.

Meralco has been consistently generating robust free operating cash flows because of its resilient profitability and predictable capital expenditure requirements, the agency said.

As a result, the company's capital structure has steadily improved despite increasing dividend payout, S&P 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.