AYALA CORP. said its “A-” foreign currency long-term issuer rating from the Japan Credit Rating Agency, Ltd. (JCR) may enhance its ability to secure yen-denominated loans.
The rating, which indicates a “relatively high level of creditworthiness,” advises that the conglomerate has a strong capacity to meet financial commitments, Ayala Corp. said in an e-mail statement on Monday.
The “A-” rating with a stable outlook may improve the conglomerate’s ability to tap credit and capital markets, including access to Samurai loans. It is in line with the Philippine sovereign rating.
“While high interest rates are anticipated to persist, cost of capital is expected to remain competitive. When we have widened access to capital, we are more able to build businesses that enable people to thrive,” Ayala Corp. Treasurer Estelito C. Biacora said.
“This is an affirmation of Ayala Corp.’s strong credit and further enhances funding sources amidst the current market volatilities,” he added.
JCR said in a report that the company’s creditworthiness was emphasized by its business foundation with stable cash flow as well as a relatively favorable financial balance to support the growth potential of its business portfolio.
Mizuho Bank was the advisor for the company’s JCR rating.
“Key points to be watched in the future are the impact of changes in factors such as interest rates, or trends of the real estate market or regulations on the ability to generate cash flow and its financial balance of the businesses in which it invests, changes in its business portfolio stemming from changes in its investment policy and trends of its consolidated financial balance,” JCR said.
“In particular, as Ayala Corp. plans to expand its renewable energy power generation capacity in the power business, JCR will closely monitor how this will impact its financial position,” it added.
Ayala Corp.’s core businesses are in the real estate, banking, telecommunications, and renewable energy sectors. It also has a growing presence in healthcare, mobility, and logistics as well as investments in industrial technologies, education, and other ventures.
On Monday, Ayala Corp. shares rose by 1.89% or P11 to P593 apiece. — Revin Mikhael D. Ochave
