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 powerful capability to satisfy 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’s in keeping with the Philippine sovereign rating.
“While high rates of interest are anticipated to persist, cost of capital is anticipated to stay competitive. When we have now widened access to capital, we’re more capable of construct businesses that enable people to thrive,” Ayala Corp. Treasurer Estelito C. Biacora said.
“That is an affirmation of Ayala Corp.’s strong credit and further enhances funding sources amidst the present market volatilities,” he added.
JCR said in a report that the corporate’s creditworthiness was emphasized by its business foundation with stable money flow in addition to a comparatively favorable financial balance to support the expansion potential of its business portfolio.
Mizuho Bank was the advisor for the corporate’s JCR rating.
“Key points to be watched in the longer term are the impact of changes in aspects comparable to rates of interest, or trends of the true estate market or regulations on the power to generate money flow and its financial balance of the companies during which it invests, changes in its business portfolio stemming from changes in its investment policy and trends of its consolidated financial balance,” JCR said.
“Particularly, as Ayala Corp. plans to expand its renewable energy power generation capability in the ability business, JCR will closely monitor how this can impact its financial position,” it added.
Ayala Corp.’s core businesses are in the true estate, banking, telecommunications, and renewable energy sectors. It also has a growing presence in healthcare, mobility, and logistics in addition to 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
