Manila North Tollways' P5.5-billion notes secure highest rating

MANILA, Philippines - Domestic credit rating agency Philippine Ratings Services Corp. (Philratings) has maintained its PRS Aaa rating for Manila North Tollways Corp.’s P5.5-billion fixed rate corporate notes due 2013.

“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligations is extremely strong,” Philratings said. PRS Aaa is the highest rating assigned by Philratings.

MNTC, the concessionaire of the North Luzon Expressway (NLEX), is now a unit of Metro Pacific Tollways Corp. after taking over from First Philippine Infrastructure Inc.

It will be recalled that Metro Pacific Investments Corp. (MPIC), the local arm of First Pacific Co. Ltd., acquired in November last year a controlling 67.1 percent of FPIC from the Lopez Group.

In retaining the rating, Philratings considered MNTC’s strong cash flow generation, improved debt structure and stable recurring income; NLEX’s relatively stable traffic volume; and the supportive regulatory environment in which MNTC operates.

“MNTC’s internal cash generation has always been positive and more than sufficient to pay interest and current portion of debt and Philratings expects this trend to continue given that MNTC’s business generates a significant amount of cash. Revenues are largely collected in cash on the same date service is rendered. While projections provide for additional debt financing in 2009-2010, funding will remain largely internally generated as in previous years,” Philratings said.

It added traffic volume in the NLEX has been fairly stable, with minimum traffic base ranging from 140,000-150,000 vehicles per day.

NLEX continues to provide the fastest and most comfortable route for Northern Luzon-bound motorists.