Aboitiz Power Corp. plans to raise P4 billion from the domestic market and has tapped Banco de Oro Unibank Inc., Bank of the Philippine Islands, First Metro Investment Corp. and ING NV Manila to handle the transaction.

The bonds, which will have a maturity of three or five years, were rated PRS Aaa yesterday by the Philippine Rating Services Corp. This is the highest domestic rating, meaning the credit is with minimal credit risk.

Aboitiz Power last month said it would borrow P1.5 billion from the local bond market to finance the acquisition of the Tiwi-Makban power plants in Albay and Laguna.

PRS also assigned a rating of PRS Aaa to Aboitiz Power?s P3.89-billion outstanding corporate notes issued in December.

PhilRatings said Aboitiz Power?s consistently robust operating profit, which it gets from a diverse portfolio of operating subsidiaries, was among the major consideration for the ratings.

?Using conservative assumptions, projected cash dividend receipts of APC are expected to comfortably service debt obligations over the term of the rated issues,? the agency said.

PhilRatings said the solid track record of the Aboitiz management team in power and other industries was also a factor, adding that companies within the group had been managed with prudent business and financial policies.

The Aboitiz group has significant investments in banking, food manufacturing, transport, real estate, construction and shipbuilding. Eileen A. Mencias