Ayala Corp. said it has been assigned an inaugural foreign currency long-term issuer rating of “A-” by Japan Credit Rating Agency Ltd. (JCR), with a “Stable” outlook.
The conglomerate in a statement on Monday said this rating further enhances its “access to yen-denominated loans to fund growth initiatives at competitive rates.”
The company, however, has yet to confirm if it has plans to tap the Japan financial market for its funding needs.
Ayala said the A- rating from JCR is also in line with the Philippine Sovereign Rating.
JCR in its report highlighted Ayala’s creditworthiness due to the strong business foundation of its four main segments that generate stable cash flow, and its relatively favorable financial balance to support the strong growth potential of its business portfolio.
A rating of A- indicates a relatively high level of creditworthiness and suggests that the company 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,” the conglomerate said.
Mizuho Bank acted as advisor for the company’s JCR rating.
“This is an affirmation of Ayala’s strong credit and further enhances funding sources amidst the current market volatilities. 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,” said Estelito Biacora, Ayala treasurer.
