Napocor debt gets investment grade rating from Fitch

Fitch Ratings on Wednesday said it upgraded the rating on debt papers issued by state-run National Power Corp. (Napocor) to investment grade. Fitch said it upgraded Napocor's $500 million fixed-rate debt papers from 'BB+' to 'BBB-', with a stable outlook. The 10-year the notes were issued in 2006. “The rating on the notes is credit-linked to that of the Philippines as the notes are irrecoverably and unconditionally guaranteed by the Republic of Philippines,” the debt watcher noted in an e-mailed statement. The debt watcher last week raised the Philippines' creditworthiness  to investment grade. Napocor raised the $500 million from the sale of offshore bonds, which fetched 6.875 percent in October 2006. — SOA/VS, GMA News