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Richmond Mercurio - The Philippine Star
March 11, 2025 | 12:00am
JCR has assigned an inaugural foreign currency long-term issuer rating of A- to the country’s oldest conglomerate.
STAR / File
MANILA, Philippines — Ayala Corp. (AC) is further enhancing its access to yen-denominated loans to fund growth initiatives at competitive rates after achieving a relatively high level of creditworthiness from Japan Credit Rating Agency Ltd. (JCR).
JCR has assigned an inaugural foreign currency long-term issuer rating of A- to the country’s oldest conglomerate.
An A- rating indicates a relatively high level of creditworthiness and suggests that AC has a strong capacity to meet its financial commitments.
AC said that the rating enhances the company’s ability to tap credit and capital markets, broadening its investor base to include access to Samurai loans.
“This is an affirmation of Ayala’s strong credit and further enhances funding sources amidst the current market volatilities,” AC treasurer Estelito Biacora said.
“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,” Biacora said.
AC’s A- rating from JCR as a foreign currency long-term issuer is in line with the Philippine sovereign rating. The outlook for the rating is stable.
Mizuho Bank acted as advisor for the company’s JCR rating.
“As an investment company, AC evolves long-term strategic investments in key industries, forming a conglomerate group with meaningful presence in real estate, banking, telecommunications and renewable energy. The rating reflects the creditworthiness of the group led by holding company AC,” JCR said.
“AC’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,” it said.
As one of the country’s largest conglomerates, AC has meaningful presence in real estate, banking, telecommunications and renewable energy.
It likewise has a growing presence in healthcare, mobility and logistics as well as investments in industrial technologies, education and other ventures.
