Outlook for Meralco upgraded to positive

Debt watcher S&P Global Ratings said the expansion of Manila Electric Co.’s (Meralco) scale and market position in power generation will enhance its business as an integrated power utility.

- By GABRIELL CHRISTEL GALANG

In astatement, S&P Global said it affirmed Meralco’s ‘BBB’ rating and revised its outlook to positive, citing stable cash flow and increasing diversification from power generation investments.

“The positive outlook reflects our expectation that business integration, scale, and diversity could improve with project execution in power generation, without material delays or cost overruns,” S&P stated.

The credit rating agency noted that Meralco’s gross operating generation capacity is projected to grow to 8.8 gigawatts (GW) by 2027 from 2.6 GW, a growth dependent on recent liquefied natural gas (LNG) acquisitions.