S&P upgrades Meralco outlook to 'positive'

S&P Global Ratings has upgraded its outlook for Manila Electric Co. (Meralco) to positive from stable, citing the power giant's franchise renewal and continued growth momentum.

- By BRIX LELIS

The debt watcher also maintained its long-term credit rating of "BBB" for Meralco, reflecting the company's adequate capacity to meet financial commitments while highlighting vulnerability to adverse economic conditions.

The outlook revision to positive on the power utility led by tycoon Manuel V. Pangilinan indicates that its credit rating may be raised.

S&P said the revised outlook reflects expectations that Meralco's power generation projects, if delivered on time and within budget, would improve its business integration, scale and diversification.

The company, through Meralco PowerGen Corp. (MGen), sealed a $3.3-billion landmark deal with Aboitiz Power Corp. and Ang-led San Miguel Global Power (SMGP) in January.