Ayala’s P10-B bonds bag top credit mark

MANILA, Philippines - Conglomerate Ayala Corp. obtained the highest credit grade for its planned P10 billion bond issuance.

Philippine Rating Services Corp. has assigned an issue credit rating of PRS Aaa, with a Stable Outlook, for Ayala Corp.’s P10 billion bonds. 

PRS Aaa is the highest credit rating assigned by PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk as the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. 

A Stable Outlook, on the other hand,  is defined as: “The rating is likely to be maintained or to remain unchanged in the next 12 months.”

The bonds are part of a three-year fixed rate bonds program  of up to P20 billion.

PhilRatings has likewise maintained its top credit rating for Ayala’s retail bonds due 2017, 2019, 2021, and 2027.

In issuing the rating, Philratings took into account Ayala’s strong brand equity and leading market position for its core businesses, strong management team, solid track record, sustained profitability, and healthy cash flows and financial flexibility 

Ayala, one of the largest conglomerates in the Philippines, has a leading presence in diverse industries that include real estate, financial services, telecommunications, water, electronics manufacturing services, automotive dealership and distributorship, power generation, transport infrastructure, education, and healthcare. 

In recent years, Ayala has taken on an aggressive growth strategy across its businesses to capitalize on a vibrant domestic economy.

Ayala booked a net income of P5.8 billion in in the first quarter, up 15 percent from the same period last year due to sustained growth of its subsidiaries..

After hitting its five-year income target of P20 billion, Ayala is now looking at P50 billion in net earnings over the next five years.

“ Ayala’s major business units will continue to drive earnings going forward. It is likewise the company’s intention, though, to diversify and expand its portfolio. Such will be achieved by pursuing opportunities in the energy sector, establishing an increasing presence in Southeast Asia, and exploring further new sectors like healthcare and education,” PhilRatings said.