Moody’s upgrades PSALM, Napocor debt rating

On the heels of a credit rating upgrade for the Philippines, Singapore-based Moody’s Investors Services, said Thursday it has upgraded the debt ratings of the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Power Corp. (Napocor). On Wednesday, Moody’s announced that it upgraded the country’s foreign and local currency long-term bond ratings to Ba2 from Ba3. “In light of PSALM's 100 percent ownership by the Philippine government, its distinct policy role — as mandated by law to restructure and reform the Philippine power sector — as well as the government's intention to assume any remaining assets and liabilities at the end of its corporate life, Moody's views PSALM as an extension of the government," said Moody’s assistant vice president and analyst of the Sub-Sovereign Group Jennifer Wong. PSALM — wholly-owned by the Philippine government — was created in 2001 to take ownership and manage the generation assets, liabilities, deals with independent power Producers, real estate and other disposable resources of Napocor the principal supplier of off-grid electricity in the country. PSALM is also tasked to privatize and dispose of assets to liquidate Napocor’S financial obligations. Earlier this year, Moody’s also upgraded the outlook for both PSALM and Napocor. — BC/VS, GMA News