PSALM receives affirmed Baa2 credit rating and initiates property sale

Moody’s Ratings has affirmed the Baa2 issuer rating and backed senior unsecured bond ratings for the Power Sector Assets and Liabilities Management Corporation (PSALM) with a stable outlook. The rating is closely tied to the Philippine government’s credit assessment, reflecting a very high likelihood of state support to prevent default. PSALM’s corporate life was recently extended to June 2036 under Republic Act No. 12179 to allow more time for its privatization mandate.

To manage its financial obligations, PSALM is seeking to raise at least P11.09 billion through the sale of a 39,698-square-meter portion of its Diliman property in Quezon City. The site, located in a central business district, is being prepared for residential, commercial, or mixed-use development. The company aims to unload such assets to reduce its debt, which stood at P260.6 billion at the end of 2025 after a P13.4 billion reduction.