S&P upgrades Meralco's credit rating

S&P Global Ratings has upgraded the credit rating of Manuel V. Pangilinan-led Manila Electric Co. (Meralco) due to its robust financials and steady cash flow.

- BRIX LELIS

The US-based debt watcher raised its long-term issuer credit rating on the power giant to "BBB" from "BBB-." A "BBB" rating means an issuer has adequate capacity to meet financial commitments but is more subject to adverse economic conditions, while a "BBB-" rating is considered the lowest investment grade.

Despite heavy investments in power generation business, S&P expects Meralco to maintain strong financial ratios.

"The improving profitability of the company's unregulated power generation business and steady cash flow from its regulated power distribution business will support its financial strength," S&P said.