PhilRatings

PhilRatings The Philippines' pioneer domestic rating agency. ACRAA founding member. SEC accredited. BSP recognized.

Philippine Rating Services Corporation is the pioneer domestic credit rating agency in the Philippines. It is accredited by the Securities and Exchange Commission, and recognized by the Bangko Sentral ng Pilipinas. It is also a founding member of the Association of Credit Rating Agencies in Asia.

13/08/2026

Very Strong Investment Grade Rating Assigned to Alternergy Holdings Corporation’s Proposed Fixed-Rate Corporate Notes Issuance

Philippine Rating Services Corporation (PhilRatings) has assigned an investment grade Issue Credit Rating of PRS Aa minus, with a Stable Outlook, to Alternergy Holdings Corporation’s (Alternergy; the Company) proposed Fixed-Rate Corporate Notes issuance of ₱2.0 billion. Proceeds from the issue will be used by the Company for advancing predevelopment expenses of its projects awarded by the Department of Energy (DOE) under the fourth round of its Green Energy Auction Program (GEAP-4) and other projects in the Company’s pipeline and for general corporate purposes, including the full payment of its loans.

Obligations rated ‘PRS Aa’ are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong. The ‘minus’ further qualifies the rating. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and the corresponding Outlook took into account the following key considerations:
1. The Company’s growing renewable energy portfolio supported by a favorable industry outlook, albeit limited in size and scale relative to the industry;
2. Its competent and well-experienced shareholders and management team;
3. Its pioneer status in clean energy innovation;
4. Recovering bottom-line after recording a net loss in 2022, supported by upcoming projects with long-term offtake contracts; and
5. Its increasing leverage levels to support growth.

PhilRatings based its assessment on available information and projections at the time the rating was assigned. PhilRatings shall continuously monitor developments relating to Alternergy and may change the rating and Outlook at any time, should circumstances warrant a change.

Established in 2009, Alternergy is a renewable energy holding company composed of investee companies engaged in onshore wind, mini run-of-river hydro, solar (both utility-scale farms and commercial rooftop), battery energy storage power projects, and retail electricity supply.

With a combined installed capacity of 119 megawatts (MW) as of end-March 2026, Alternergy’s operational portfolio spans the Philippines and the Republic of Palau. The Company has 11 solar projects (eight of which are under one rooftop portfolio), one wind farm, and one mini run-of-river hydro project. Looking ahead, Alternergy’s growth in scale and capacity will be supported by the DOE’s push to increase the share of renewable energy to the country’s overall power generation to 35% by 2030 and to 50% by 2040. Power projects awarded under the second round of Green Energy Auction Program (GEAP-2), the Tanay and Alabat Wind Projects, are in the advanced stages of construction and are expected to commence operations by October 2026. These are expected to increase Alternergy’s operating capacity to 311 MW by end-2026.

The Company’s projects under GEAP-4 —Liberty Solar, Kalandagan Solar, Alegria Wind, and Tayabas North Wind—are under development and are expected to be completed and begin operations in the next three years. Projects in the pipeline have a combined potential capacity of 762 MW.

On July 20, 2026, ABC Energy Inc. (ABCEI), a wholly owned energy holding company of A Brown Company, Inc. (ABCI), completed the acquisition of a 40% equity interest in each of the project companies of the 128-MW Tanay Wind Power Project and 64-MW Alabat Wind Power Project for a total consideration of ₱2.3 billion.

Alternergy’s management is composed of highly skilled and well-experienced professionals, having gained extensive experience in renewable energy development and other related industries. The Company was conceptualized by its founders, Mr. Vicente Pérez, Mr. Gerry Magbanua, and Mr. Knud Hedeager, during their development of the 33-MW Bangui Bay Wind farm, the largest wind energy project in the Philippines and the first on-grid wind farm in Southeast Asia at the time it was built in 2005. The Company is guided by its Chairman, Mr. Pérez, who served as the DOE’s Secretary from June 2001 to March 2005. During his time, Mr. Pérez played a vital role in the implementation of the power sector reforms under the Electric Power Industry Reform Act (EPIRA) of 2001 and was a policy advocate of a framework that later became the Renewable Energy Act of 2008.

Alternergy is also led by its President, Mr. Gerry Magbanua. He was part of the National Renewable Energy Board (NREB) Technical Working Group which helped develop the pricing structure for the Feed-In-Tariff (FIT) mechanism and the Green Energy Auction Financial models. Mr. Magbanua also previously worked for InterGen, a global greenfield power developer.

After building Southeast Asia's first commercial wind project, the pioneering management team developed the Pililla Wind Farm in 2015. Furthermore, Alternergy received the Securities and Exchange Commission’s (SEC) Green Equity Label, allowing the Company to attract Environmental, Social, and Governance (ESG)-focused investors. Further solidifying its pioneer status in clean energy innovation, its subsidiary, Kirahon Solar Energy Corporation (KSEC), secured the first bilateral solar contract approved by the Energy Regulatory Commission (ERC) in 2015.

The Company recorded consolidated revenues from the sale of electricity in 2022, after KSEC became a subsidiary. Revenues then jumped from ₱9.3 million in 2022 to ₱171.5 million in 2023, supported by the full-year contributions of KSEC’s 12.5-MW Kirahon Solar Project. From 2023 to 2025, the Company’s revenues grew at a compounded annual growth rate (CAGR) of 44.9% to ₱359.9 million, driven by the fresh contributions of the Palau Solar Project starting 2024. In the first nine months of 2026 (9M2026), consolidated revenues increased by 16.7% year-on-year (YoY) to ₱304.2 million, attributable to maiden contributions of the Balsik Solar Project and higher revenues from the Palau Solar Project. Driven by topline growth, cost management and higher interest income, the Company recorded a net profit of ₱38.0 million in 2023, a reversal from its net loss of ₱145.2 million in 2022. This upward trend continued through 2025, where net income jumped by 334.0% to ₱165.0 million and in 9M2026, with bottom line increasing by 4.3% YoY to ₱113.8 million.

Alternergy’s operating assets are subject to long-term power supply agreements (PSA) with offtakers. Its Kirahon Solar Project supplies clean energy under a 25-year PSA to Cagayan Electric Power and Light Company (CEPALCO). The upcoming capacity from GEAP-2 and GEAP-4 awarded projects will be contracted under a 20-year Renewable Energy Power Agreement (REPA) with the National Transmission Corporation (TransCo). On the other hand, PhilRatings notes that Alternergy’s operating assets were funded through non-recourse project finance facilities with relatively shorter tenors of up to 15 years.

To fund its growth, Alternergy has tapped the capital markets and banks. Considering this, consolidated debt-to-equity ratio moved from 0.6x as of calendar year-end 2021 to 3.0x as of fiscal year-end 2025, on account of additional debt availments to fund the construction of its capital-intensive power projects. As of end-March 2026, debt-to-equity ratio increased to 4.1x. At the Parent-level, debt-to-equity ratio stood at 1.0x as of fiscal year-end 2025.

13/08/2026

Citicore Renewable Energy Corporation Receives Strong Issuer Credit Rating of PRS Aa plus (corp.)

Philippine Rating Services Corporation (PhilRatings) assigned an Issuer Credit Rating of PRS Aa plus (corp.), with a Stable Outlook, to Citicore Renewable Energy Corporation (CREC, the Company).

An Issuer Credit Rating is an opinion on the overall creditworthiness of a company, evaluating its ability to meet all its financial obligations within a time horizon of one year. A company rated PRS Aa (corp.) differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. The “plus” further qualifies the assigned rating. A Stable Outlook means that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned credit rating and Outlook took into account the following major rating considerations: (i) strong growth trajectory despite a relatively short operating history, backed by vertically-integrated operations and industry support for renewable energy; (ii) the Company’s ability to establish strategic partnerships with and get investments from reputable institutions; (iii) CREC’s sustained profitability and cashflow generation backed by long-term contracts, with expected rapid growth continuing in the coming years; and (iv) its manageable capital structure, considering its capital-intensive business and aggressive expansion.

PhilRatings’ rating is based on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to CREC, and may change the rating at any time, should circumstances warrant a change.

CREC is one of the leading pure renewable energy companies in the country. The Company is engaged in developing, constructing, and operating renewable energy generating assets, including ground-mounted and hybrid solar, onshore wind, and battery energy storage systems (BESS). CREC began its operations in 2015 through its parent company, Citicore Power Inc. (CPI). Since then, CREC has significantly expanded its operations, growing from three operating assets with a combined capacity of 103 megawatts (MW) to 21 solar assets with a combined capacity of 1,218 MW as of end-June 2026. Under its “5 gigawatts (GW) in 5 Years Roadmap”, the Company targets to add an average capacity of 1 GW per year until 2029. CREC is a vertically integrated platform providing end-to-end solutions that encompass all stages of the renewable energy value chain. It leverages the construction and engineering expertise of its affiliates, Megawide Construction Corporation and Citicore Construction, Inc., to design and build its renewable energy projects.

As of report-writing date, the Company’s operating renewable energy assets are purely solar. Nonetheless, it intends to diversify into onshore wind power. In 2023, the Company secured 360 MW of wind projects under the Department of Energy’s (DOE) second round of the Green Energy Auction Program (GEAP 2). These wind projects will be developed through a joint venture with Levanta Renewables (Levanta). CREC has yet to start the construction of its maiden wind project – the 45-MW wind facility in Camarines Sur (CamSur).

Aside from the partnership with Levanta, CREC also secured a $12.5 million investment from the British Government’s MOBILIST program (Mobilist). Mobilist invests in new listed products/companies that contribute to the attainment of the United Nations’ Global Goals. PT Pertamina Power Indonesia (Pertamina NRE; PNRE) also completed the acquisition of a 20% stake in CREC, with a total investment value of approximately $120 million. PNRE is a renewable energy subsidiary of PT Pertamina (Persero) – an Indonesian state-owned oil and natural gas corporation. These marked PNRE’s and MOBILIST’s first investment in the Philippines. Moreover, the Government Service Insurance System (GSIS) also became a shareholder of the Company following a series of secondary-market purchases in the second quarter of 2026. These developments reflect the growing support in CREC’s renewable energy platform and long-term growth strategy.

Over the past five years, CREC has delivered sustained growth in both its top line and bottom line, supported by the expansion of its renewable energy portfolio. Total revenues increased from ₱1.0 billion in 2021 to ₱5.3 billion in 2025, while net income grew from ₱192.3 million to ₱1.15 billion over the same period. Net profit margin likewise improved despite some fluctuations, increasing from 19.1% in 2021 to 21.7% in 2025. In the first three months of 2026, net income further increased by 58.2% year-on-year to ₱364.4 million despite lower revenues, mainly due to lower purchase of power and distribution charges. Looking ahead, electricity sales are seen to remain on an upward trajectory as additional solar projects commence commercial operations. While profitability may still be affected by higher finance costs associated with the Company's expansion, earnings and profit margins are projected to improve over the medium term as CREC's operating renewable energy portfolio expands. The Company is also expected to continue utilizing a combination of internally generated cash flows, additional borrowings, and planned equity issuances to support its expansion.

To support its aggressive renewable energy expansion, the Company has utilized a combination of debt and equity financing. CREC's capital base continued to strengthen through its 2024 initial public offering, the strategic equity investment from PNRE in 2025, and earnings retention. As of end-March 2026, CREC’s consolidated debt-to-equity ratio stood at 2.2x, while its solvency ratio remained at 1.4x. Leverage levels are seen to remain manageable despite an anticipated increase to finance its renewable energy pipeline in the near term. Over the medium term, leverage is projected to gradually improve as the Company's capital base strengthens through planned equity issuances and the accumulation of retained earnings.

27/07/2026

San Miguel Bonds Keeps Highest Rating

Philippine Rating Services Corporation (PhilRatings) has maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for San Miguel Corporation’s (SMC) outstanding bonds amounting to ₱139.2 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and Outlook took into account SMC’s: (1) diversified portfolio that includes market-leading businesses; (2) solid leadership, with a well-defined succession program; (3) sustained profitability, albeit higher charges and non-recurring transactions affected bottom line; and (4) ample liquidity, supported by stable cash flow generation.

PhilRatings’ ratings are based on available information and projections at the time that the rating was assigned. PhilRatings shall continuously monitor developments relating to SMC and may change the ratings at any time, should circumstances warrant a change.

SMC has built a highly diversified portfolio of businesses which includes food and beverage, packaging, energy, fuel and oil, infrastructure, cement, property, and banking services. Over the years, its key businesses have established solid market leadership, supported by strong brand equity and proven track record. In 2025, the Group’s ₱1.5 trillion revenues represented approximately 5.3% of the country’s Gross Domestic Product (GDP).

SMC’s management is composed of highly skilled and well-experienced professionals, with a track record of successfully steering the conglomerate through various economic and industry highs and lows. The Company is led by Mr. Ramon S. Ang, SMC’s Chairman and Chief Executive Officer (CEO). Mr. Ang is largely credited with the successful diversification of SMC outside of the food and beverage business.

In June 2024, Mr. John Paul L. Ang, the eldest son of Mr. Ramon S. Ang, was elected as President and Chief Operating Officer (COO) of SMC. In May 2026, he was also elected as President and CEO of Petron Corporation (Petron), the fuel and oil arm of SMC. He is also the President and CEO of San Miguel Food and Beverage, Inc. (SMFB) since 2024, Eagle Cement Corporation since 2008, and Solid North Mineral Corp. and Southwestern Cement Corporation since 2017. He is the President of San Miguel Equity Investments Inc. (SMEII) since 2023. His steady rise to senior leadership positions within the Group over the years reflects the Group’s strategy on business continuity, supported by a clear succession plan.
SMC’s profitability continued to be resilient, backed by the Group’s widely diversified business operations. Consolidated net income rebounded by 158.2% in 2025 to ₱94.7 billion, supported by core income growth and one-off gain in relation to the Energy segment’s deconsolidated subsidiaries. In the first three months of 2026 (3M2026), consolidated sales went up by 18.7% to ₱428.3 billion. Bottom line, however, was lower due to the exclusion of the one-time gain recognized in the previous year, as well as the recognized foreign exchange loss for 3M2026. Net income amounted to ₱22.5 billion, down by 48.2% from last year. Margins, however, remained within historical levels.

Year-end cash and cash equivalents further grew to ₱351.7 billion as of end-2025, while current ratio was kept ample at 1.2x. Cash flow generation was backed by healthy pre-tax income and capital-raising activities. In 3M2026, cash from operating activities was ample at ₱51.7 billion. Additional cash was raised from financing activities, amounting to ₱35.2 billion. Cash was mainly used in disbursements relating to property, plant and equipment and other intangible assets. Given the foregoing, cash and cash equivalents stood at ₱424.5 billion as of end-March 2026, expanding by 20.7% from end-2025. Current ratio remained more than adequate at 1.2x.

Continued core business expansion and enhancement projects will be supportive of top line growth, moving forward. Cash flows are likewise expected to be healthy, backed by sustained profitability. Given the foregoing, SMC is seen to be in a good position to service its debt obligations.

27/07/2026

EastWest Gets High Credit Rating

East West Banking Corporation (EastWest; the bank), the banking arm of the Filinvest Group, has been assigned an Issuer Credit Rating of PRS Aa plus (corp.), with a Stable Outlook, by Philippine Rating Services Corporation (PhilRatings).

EastWest is a domestic universal bank serving consumer and corporate clients through a broad range of financial products and services. The bank has established itself as a key player in the domestic consumer lending market, with consumer finance accounting for 83.9% of its gross loan portfolio as of end-December 2025. EastWest ranked as the country’s eleventh largest bank based on total assets of ₱534.6 billion, as of December 31, 2025, based on Bangko Sentral ng Pilipinas (BSP) data.

A company rated ‘PRS Aa’ differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. The ‘plus’ further qualifies the rating. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned Issuer Credit Rating and Outlook take into account the following key considerations: (1) EastWest’s ability to compete in its chosen market, (2) its strong shareholders and highly experienced management, and (3) the bank’s improved profitability on account of its loan portfolio expansion.

PhilRatings based its assessment on available information and projections at the time that the rating was assigned. PhilRatings shall continuously monitor developments relating to EastWest and may change the rating at any time, should circumstances warrant a change.

As of April 2026, Filinvest Development Corporation (FDC) effectively owned 77.85% of EastWest. FDC is a diversified holding company owned by the Gotianun Family, with interests in property, banking, power, sugar and infrastructure. PhilRatings assigned an Issuer Credit Rating of PRS Aaa, with a Stable Outlook, to FDC in relation to its ₱8.0 billion preferred shares issuance. It likewise maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for its outstanding bonds amounting to ₱10.0 billion.

Amid increased competition due to more banks expanding their presence in the consumer lending market, EastWest continues to leverage its extensive experience in and deep understanding of this segment as its key competitive strength. As of end-2025, the bank ranked sixth among its peer banks in terms of total consumer loan portfolio, maintaining its position from the previous year.

EastWest also benefits from the support of the Filinvest Group and an experienced management team. Jonathan T. Gotianun serves as Chairman of both FDC and EastWest, underscoring the bank’s strategic importance within the Group. At the management level, EastWest has been led by Jacqueline S. Fernandez as President since July 2022. Ms. Fernandez has over 33 years of banking experience. Chief Executive Officer Jerry G. Ngo, who assumed the role in January 2023, brings to EastWest more than two decades of experience in banking, finance, and related fields. Chief Financial Officer Daniel L. Ang Tan Chai similarly has more than 30 years of expertise in finance and information technology.

From 2023 to 2025, EastWest’s interest income recorded consistent growth, rising from ₱34.6 billion to ₱50.4 billion and which translates to a compound annual growth rate (CAGR) of 20.7%. Key contributors to the growth were the credit cards, teachers’ loans, personal loans, and auto loans businesses. Notwithstanding higher funding volumes and elevated cost of funds, the bank managed to grow its net interest margin (NIM) from 7.6% in 2023 to 8.5% in 2025. This supported the 20% CAGR in net interest income, from ₱28.2 billion to ₱40.6 billion over the same period.

Non-interest income steadily rose, from ₱7.4 billion in 2023 to ₱10.4 billion in 2025 and which represents a CAGR of 18.1%. The growth was driven mainly by higher loan- and deposit-related fees such as service charges, fees and commissions. The bank’s total operating income expanded by a CAGR of 19.6%, from ₱35.7 billion in 2023 to ₱51.0 billion in 2025.

Operating expenses, excluding provisions, rose from ₱20.3 billion in 2023 to ₱25.4 billion in 2025, translating to a CAGR of 11.8%. Key contributors to this growth include compensation and fringe benefits, service charges, fees, and commissions, and higher taxes such Gross Receipt Tax (GRT) and Documentary Stamp Tax (DST) resulting from increased transaction volumes.

Provisioning for losses significantly expanded by a CAGR of 36.0%, from ₱7.7 billion in 2023 to ₱14.2 billion in 2025. According to management, the significant growth in its provision for impairment and credit losses was in line with the growth of its unsecured consumer lending. PhilRatings also notes that the elevated provisioning during the period primarily reflects portfolio seasoning and proactive risk management measures.

Given the aforementioned, EastWest’s net income steadily increased from 2023 to 2025, rising from ₱6.1 billion to ₱9.2 billion, representing a CAGR of 23.1%. Return on average assets (ROAA) likewise improved from 1.4% in 2023 to 1.7% in 2025.

In the first quarter of 2026 (1Q2026), EastWest’s interest income went up by 16.2% to ₱13.6 billion, from ₱11.7 billion in 1Q2025. The growth was driven by higher volume of loans and fixed income securities. Total interest expense marginally grew by 2.2%, from ₱2.4 billion to ₱2.5 billion over the same period. NIM was higher at 8.6% from 8.1% in the same period last year. These favorable developments propped up interest income, which grew by 19.9% to ₱11.1 billion in 1Q2026. The bank’s non-interest income, however, slightly declined by 5.5% to ₱2.2 billion on account of trading and securities losses. EastWest’s total operating income rose by 14.8% to ₱13.3 billion.

Operating expenses, excluding provisions, was slightly up by 1.2% to ₱6.4 billion. Miscellaneous expenses grew by 11.6% primarily due to increase in advertising and service charges, fees and commissions. Taxes and licenses also expanded by 11.2% on account of higher GRT and DST from increased volume of both loans and deposits. Meanwhile, provision for losses jumped by 59.1% to ₱4.7 billion, commensurate with loan portfolio growth. PhilRatings notes that the bank’s elevated provisioning during the period reflects its conservative approach to credit risk management amid near-term pressure from macroeconomic conditions.

As a result, EastWest posted a marginal growth of 1.1% in its net income to ₱1.9 billion in 1Q2026. ROAA was slightly lower at 1.3%.

23/06/2026

NRCP Receives Strong Rating

National Reinsurance Corporation of the Philippines (NRCP; the Company), the country’s sole professional reinsurer, was assigned a financial strength rating of PRS A plus, with a Stable Outlook, by Philippine Rating Services Corporation (PhilRatings).

An insurer rated PRS A has strong financial security characteristics but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies. The “plus” further qualifies the assigned rating. On the other hand, a Stable Outlook indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned financial strength rating and Outlook take into account NRCP’s: a) solid market franchise; b) strong shareholders and highly-experienced management; c) sound investment portfolio; d) sustained net income growth; and e) sound capitalization.

PhilRatings based its assessment on available information and projections at the time that the rating was assigned. PhilRatings shall continuously monitor developments relating to NRCP and may change the rating and Outlook at any time, should circumstances warrant a change.

NRCP, the sole domestic professional reinsurance company in the country, enjoys a solid market franchise. The Company has the advantage of taking up at least 10% of all outward reinsurance business from domestic insurance companies, as mandated by law. This provides NRCP significant access to the local reinsurance business and insight into the reinsurance needs of domestic reinsurers.

As of end-2025, the Government Service Insurance System (GSIS), Bank of the Philippine Islands (BPI), and MICO Equities, Inc.’s (MICO Equities) collectively held 52.4% of NRCP’s total outstanding shares. GSIS, the Philippines’ state insurer for government employees, was NRCP’s largest shareholder with a 25.8% ownership stake, while MICO Equities and BPI had stakes of 12.9% and 13.7%, respectively. MICO Equities serves as the holding company for the Yuchengco Group’s non-life insurance business, Malayan Insurance Co., Inc. (Malayan). In 2025, Malayan was the second largest domestic non-life insurance company based on total assets and third in terms of gross premiums written (GPW). BPI is one of the leading universal banks in the Philippines. According to Bangko Sentral ng Pilipinas’ (BSP) data as of end-2025, BPI ranked second among the country’s banks in terms of total assets, capital and total net loans and receivables, and third in terms of total deposits.

NRCP is led by a seasoned management team with solid experience in and understanding of the insurance industry and financial markets, both domestic and global. Allan R. Santos has been President and Chief Executive Officer since 2018. Prior to his current position, Mr. Santos was the Executive Vice President (EVP) and Chief Operating Officer (COO) of NRCP. He was COO for affiliate companies of Philam Life and was also Regional Chief Financial Officer (CFO) for Europe of Cigna Global Health Benefits.

NRCP’s total investment assets as of end-2025 stood at ₱11.3 billion, up by 11.8% from ₱10.1 billion as of end-2024. Low-risk fixed income investments continued to account for bulk of NRCP’s total investment portfolio, representing 95.3% of total investments. Government securities comprised the majority of the Company’s fixed income portfolio, accounting for 79.0% of total as of end-2025. Investments in companies listed on the Philippine Stock Exchange (PSE) represented 4.0% of the NRCP’s total investment portfolio.

In 2025, NRCP's total GPW amounted to ₱5.7 billion, a 4.9% decline from the previous year on account of lower premium income from agriculture treaties. This decrease was partially offset by higher premium income generated by the Company’s life business. NRCP registered a notable decline in its underwriting expenses for the period, dropping by 19.4%, from ₱4.4 billion in 2024 to ₱3.5 billion in 2025. This was the lowest claims and commissions relative to net earned premiums recorded since 2019. Consequently, net underwriting income jumped by 49.4%, from ₱498 million to ₱744 million over the same period. Supported by a 25.7% increase in investment and other income to ₱670 million, NRCP’s net income grew by 50.4%, from ₱551 million in 2024 to ₱829 million in 2025.

Returns were also notably up, in line with improved operating results. Return on assets (ROA) reached 3.6% as of end-2025, the highest level recorded by the Company since 2019.

As of end-December 2025, risk-based capital (RBC) ratio stood at 218%, more than double the minimum ratio of 100.0% required by the Insurance Commission. Total equity, amounting to ₱7.7 billion as of end- 2025, also significantly exceeded the minimum regulatory net worth requirement of at least ₱3.0 billion.

29/05/2026

Highest Credit Rating Maintained for Maynilad’s Outstanding Blue Bonds

Philippine Rating Services Corporation (PhilRatings) has maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, to Maynilad Water Services, Inc.’s (Maynilad; the Company) outstanding blue bonds amounting to ₱15.0 billion.

Obligations rated ‘PRS Aaa’ are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. ‘PRS Aaa’ is the highest rating assigned by PhilRatings. A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The assigned rating and Outlook take into account the following key considerations: (1) Maynilad’s exclusive right to provide water and wastewater services in its concession area; (2) its seasoned management with strong regulatory expertise, and solid parent support; (3) its sustained profitability and sufficient debt coverage; (4) its improved financial flexibility; and (5) its continuous cash collections from customers.

PhilRatings based its assessment on available information and projections at the time that the rating process was ongoing. PhilRatings shall continuously monitor developments relating to Maynilad and may change the rating and Outlook at any time, should circumstances warrant a change.

Maynilad is the exclusive provider of water and wastewater services in the West Zone of the Greater Metro Manila area. The Company’s concession area spans 540 square kilometers, encompassing 17 cities and municipalities.

In June 2025, the Economy and Development Council, chaired by President Ferdinand Marcos, approved the 10-year extension of the Company’s concession agreement, moving its expiration from July 31, 2037 to January 21, 2047. With this extension, the term of the concession agreement now aligns with its 25-year legislative franchise (Republic Act No. 11600).

Maynilad, as a water utility, is highly regulated by the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS RO). The MWSS RO is mandated to monitor the Company's performance regarding its service obligations and determines and imposes penalties for non-compliance. Tariff adjustments are likewise subject to the recommendation of the MWSS RO and the approval of the MWSS’ Board of Trustees. Nonetheless, the Company has demonstrated its ability to navigate this highly regulated industry, as evidenced by the successful renegotiation of its concession agreement in 2021 and the subsequent extension of the concession term. Manny V. Pangilinan (MVP) is the Chairman of the Board of Directors of Maynilad since 2007, while Ramoncito S. Fernandez has been the President and Chief Executive Officer of the Company since 2016.

As of end-2025, Metro Pacific Investments Corporation (MPIC) was Maynilad’s largest shareholder, owning a 38.3% effective interest. MVP also sits at the helm of MPIC as its Chairman and President. As a subsidiary of MPIC, Maynilad benefits from its extensive network, experience, and expertise. Additionally, DMCI Holdings, Inc., one of the leading engineering and construction companies in the country, also held an 18.2% stake in the Company as of end-2025.

As a provider of water, Maynilad enjoys a relatively stable demand for its services and consistent cash collection, as customers tend to prioritize basic needs despite regulatory or economic disruptions. In November 2025, Maynilad listed its shares on the Philippine Stock Exchange, ahead of the deadline set in its legislative franchise. This move is expected to strengthen Maynilad’s liquidity position and provide greater financial flexibility through a more diversified funding base.

In 2025, Maynilad’s top line grew by 9.4% to ₱36.6 billion, driven by approved tariff adjustments and a relatively steady number of billed connections. The Company also achieved an average non-revenue water (NRW) of 34.9% during the year, an improvement from 39.9% in 2024. This NRW reduction led to savings on key operating costs, hence, improved operating income. Similarly, Maynilad’s net income expanded by 19.1% to ₱15.2 billion in 2025. Interest coverage (based on EBIT) and debt service coverage ratio also remained more than sufficient at 9.8x and 4.5x, respectively, as of end-2025.

The Company sustained its growth momentum in the first quarter of 2026, with its top line growing by 6.2% year-on-year (YoY) to ₱9.1 billion and its net income by 10.3% YoY to ₱4.0 billion.

Address

5F ALGO Center 162 L. P. Leviste Street, Salcedo Village
Makati
1227

Opening Hours

Monday 8:30am - 5:30pm
Tuesday 8:30am - 5:30pm
Wednesday 8:30am - 5:30pm
Thursday 8:30am - 5:30pm
Friday 8:30am - 5:30pm

Telephone

+63288123215

Website

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