GT Capital retains top rating for P22-B bonds

MANILA, Philippines -  Philippine Rating Services Corp. maintained the top rating for the outstanding P22 billion bonds of GT Capital Holdings Inc., the listed investment arm of the family of banking tycoon George S.K. Ty, given the group’s stable businesses and strong liquidity.

PhilRatings kept its PRA Aaa rating, which reflects minimal credit risk.  This means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.  

The rating has a stable outlook.

The rating reflects GT Capital’s growing and diversified investments portfolio, strong partnership with recognized best of class global experts, good management team,  and sound capitalization.

GT Capital is a major Philippine conglomerate, with interests in market-leading businesses in banking, property development, power generation, automotive assembly and distribution, and life and non-life insurance.  

“While PhilRatings generally views concentrated ownership structures less favorably, the Ty family is seen as having a supportive and stabilizing influence on the GT Capital Group, given the family’s well-established reputation and credibility.  The family has a reputable track record of growing businesses, while showing an in-depth knowledge of the local business environment,” the local credit watcher said.

Banking arm Metropolitan Bank & Trust Co. provides a full range of banking and other financial services.  It is particularly strong in the middle market corporate sector.  

As of the end of 2014, Metrobank was the second largest bank based on assets, deposits and capital accounts which stood at P1.6 trillion, P1.2 trillion and P158.8 billion, respectively. With a network of 920 branches and 2,100 automated teller machines, Metrobank’s capital adequacy ratio remained above the regulatory minimum at 16.03 percent as of the end of last year.

Property unit Federal Land Inc., focuses on the  upper-mid end real estate market.   Its association with the GT Capital Group gives the property company a competitive advantage as it reaches a wider network of potential customers.

Last August, GT Capital  signed an agreement to acquire 22.7 percent of Property Company of Friends Inc. for P7.2 billion, subject to closing conditions and with an option to increase its stake to 51 percent in the next three years.

Power subsidiary  Global Business Power Corp. is one of the leading independent power producers in the Visayas, with a combined gross dependable capacity of 704 megawatts as of end-2014.

Toyota Motor Philippines Corp. remained the leading automotive firm last year, accounting for a 39.4 percent market share. Backed by its popular models mix and well-positioned sales distribution and service network, TMP kept its industry leadership in terms of overall, passenger car, and commercial vehicle sales.

Insurance firm AXA Philippines is a partnership between Metrobank and the AXA Group, one of the world’s largest financial protection and wealth management companies, with 103 million customers in 59 countries.  

AXA Philippines is considered a significant player in the country’s life insurance industry.  Based on data from the Insurance Commission, it was the second biggest insurance firm based on premium income (P18.3 billion), third in paid-up capital (P1 billion); third in net income (P1.2 billion) and ninth in net worth (P2.9 billion).  

Unit Charter Ping An, on the other hand, offers fire, property, motor car, bonds, personal accident, maritime cargo and hull, casualty and engineering insurance products.