NLEX Corp retains top rating for P13 billion outstanding bonds

MANILA, Philippines — Philippine Rating Services Corp. (PhilRatings) maintained the credit rating of PRS Aaa, with a stable outlook, for NLEX Corp.’s total outstanding fixed rate bonds amounting to P13 billion. 

Obligations rated PRS Aaa are of the highest quality with minimal credit risk as the issuer’s capacity to meet its financial commitment on the obligation is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings. 

On the other hand, a stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months. 

In assigning the ratings, PhilRatings considered NLEX’s strong cash flows and buffer in terms of operating margins to comfortably service debt obligations as well as the firm’s relatively conservative capital structure, well-managed toll franchise and resilient demand for toll services.

NLEX is the concessionaire of the largest toll road network in the country. It has maintained and efficiently managed its toll roads and facilities with an experienced management team and the solid support of its parent company, Metro Pacific Tollways Corp.

Traffic volume has consistently increased year-on-year, fueling the company’s revenues. Additional income from the toll rate adjustments implemented this year further boosted operating income.

This sustained profitability has translated to healthy cash flows and a robust equity base. Total revenues rose 15 percent to P11.2 billion in the nine months to September last year.

The company’s two concessions – the North Luzon Expressway (NLEX) and the Subic – Clark-Tarlac Expressway (SCTEX) – continue to be the most viable means of transport for commute and freight, providing seamless travel to their respective route networks.

NLEX Corp. reported a net income of P4.6 billion as of end September 2019, up eight percent year-on-year.