Conglomerate Ayala Corporation has earned an A minus (A-) rating from the Japan Credit Rating Agency Ltd. (JCR) for its inaugural long-term foreign currency debt sale, the company said on Monday. The rating, which aligns with the Philippine sovereign rating, will significantly improve Ayala’s access to yen-denominated loans, providing more favorable borrowing terms for its growth initiatives.
The outlook for Ayala’s A- rating is stable, reflecting the company’s solid financial position and capacity to meet its financial obligations. An A- rating is indicative of a high level of creditworthiness, positioning Ayala as a reliable borrower with strong financial prospects.
“This rating strengthens our ability to tap into credit and capital markets, broadening our investor base and facilitating access to Samurai loans,” Ayala said in a statement. The company also emphasized that the rating would provide a competitive edge in securing capital despite anticipated market volatilities and high interest rates.
According to JCR’s report, Ayala’s robust creditworthiness stems from its diversified business portfolio, which includes four key segments that generate stable cash flow. The company’s financial strength supports its growth potential, making it an attractive investment for creditors.
Estelito C. Biacora, Ayala treasurer, expressed confidence in the company’s continued ability to navigate market fluctuations. “This is an affirmation of Ayala’s strong credit and further enhances funding sources amidst the current market volatilities,” he 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.”
Mizuho Bank served as advisor for Ayala’s JCR rating bid.
