Citicore REIT Retains Strong Credit Rating

The Philippines’ first renewable energy REIT, Citicore Energy REIT Corp. (CREIT), has retained its strong credit ratings from the Philippine Rating Services Corporation (PhilRatings) since 2022.

The company has been given an Issuer Credit Rating of PRS Aa plus (corp.) with a Stable Outlook, while its ASEAN Green Bonds maintain an Issue Credit Rating of PRS Aa plus with a Stable Outlook. I Photo: CREIT

The company has been given an Issuer Credit Rating of PRS Aa plus (corp.) with a Stable Outlook, while its ASEAN Green Bonds maintain an Issue Credit Rating of PRS Aa plus with a Stable Outlook.

PhilRatings, the country’s pioneer domestic credit rating agency, stated that CREIT's ratings are based on the following considerations: “(i) CREIT is well-positioned to benefit from the country’s growing renewable energy needs with its unique and fully occupied portfolio of green assets; (ii) the company’s reputable shareholders; (iii) its strong profitability with high margins; and (iv) its sound financial position and more than satisfactory liquidity.”

“Sustaining the PRS Aa+ credit rating from PhilRatings, for both the company as an issuer and the company’s maiden ASEAN Green Bond, is a testament to the company’s strong financial position and profitability as the foremost energy REIT in the Philippines, delivering superior yields from its green asset portfolio. We intend to continue as a platform that empowers investments, ensuring that our debt instruments are trusted by creditors and investors,” said Oliver Tan, CREIT President and CEO.

According to the agency, the Issuer Credit Rating signifies the “overall creditworthiness of a company, evaluating its ability to meet all its financial obligations within a time horizon of one year,” with the Stable Outlook rating expected to remain unchanged in the next 12 months.

Issue Credit Ratings rated PRS Aa, meanwhile, indicate high quality and very low credit risk, with the obligor’s capacity to meet financial commitments being very strong.

CREIT’s oversubscribed outstanding ASEAN Green Bonds, amounting to PhP4.5 billion, were issued in February 2023.

Proceeds were used to acquire value-accretive properties to grow the company’s green asset portfolio to its current 7.1 million square meters, cementing its status as the country’s largest renewable energy landlord.

Tan further stated that the continued issuance of strong ratings reflects the agency’s confidence in CREIT’s unique business model.

With 100% occupancy leased out to solar operators and developers and operating in a crisis-proof industry, CREIT has consistently declared above-prescribed dividends since its listing on the stock market in February 2022.

CREIT’s current land parcels form part of the expansion pipeline of its sponsor, Citicore Renewable Energy Corporation, which is moving full speed ahead with its goal of achieving 5GW in five years.