5 days ago
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Zobel-led Ayala Corporation’s access to yen-denominated loans to fund growth initiatives at competitive rates has been enhanced after being assigned an inaugural Foreign Currency Long-Term Issuer Rating of “A-” by the Japan Credit Rating Agency, Ltd. (JCR).
According to the report released by JCR, the firm's group creditworthiness is considered to be equivalent to “A”, reflecting the strong business foundation in its four main segments of investment, the stability of its cash flow generation capabilities, the strength of its growth potential stemming from its business portfolio, and its relatively favorable financial balance.
However, JCR said it has assigned Foreign Currency long-term issuer Rating of “A-” with a Stable outlook to Ayala as it is constrained by the Philippines' sovereign rating.
A rating of “A-” indicates a relatively high level of creditworthiness and suggests that Ayala Corporation has a strong capacity to meet its financial commitments.
The rating enhances Ayala’s ability to tap credit and capital markets, broadening its investor base to include access to Samurai loans. Mizuho Bank acted as advisor for the company’s JCR rating.
Ayala Corp. Treasurer Estelito C. Biacora“This is an affirmation of Ayala’s strong credit and further enhances funding sources amidst the current market volatilities,” said Ayala Treasurer Estelito C. Biacora.
He added that, “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.”
JCR said 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 Ayala invests, changes in its business portfolio stemming from changes in its investment policy and trends of its consolidated financial balance.
In particular, JCR plans to closely monitor how Ayala’s plans to expand its renewable energy power generation capacity in the power business will impact its financial position.
