GT Capital retains top credit rating

MANILA, Philippines - GT Capital Holdings Inc. maintained the top credit rating for its outstanding P22 billion bonds amid the solid market positions of its businesses.

It is one of the largest Philippine conglomerates whose diversified business interests include banking, property development, infrastructure and utilities, auto assembly and importation, dealership and financing, as well as life and non-life insurance.

Local credit watchdog Philippine Rating Services Corp. stuck with GT Capital’s PRS Aaa rating – the agency’s highest rating – and maintained a stable outlook for the bonds.

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

 A stable outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

In issuing the rating, PhilRatings considered GT Capital’s well-defined growth strategy, strong partnerships with recognized local and global players, sound capital structure; and investments which are spread across industries that are expected to ride the Philippines’ continued economic growth.

Banking arm Metropolitan Bank & Trust Co. is considered a strong player in the local banking industry. As of the end of December last year, the bank was ranked second based on assets (P1.9 trillion), loans (P1.1 trillion) and capital (P196 billion). It also had the third largest deposit base with P1.4 trillion.

Toyota Motor Philippines is the leading and largest automotive company in the Philippines, with a market share of 39 percent as of the end of 2016. It is a joint venture between taipan George Ty’s GT Capital and Japan’s Toyota Motor Corp.

Toyota has remained the top vehicle brand in the country despite keen competition from other recognized international auto brands.

Property unit Federal Land primarily focuses on the development of high-rise, vertical residential condominium projects, as well as on master-planned communities that offer residential, retail, office, and commercial space.

It has acquired a stake in Property Company of Friends (Pro-Friends), which has built and sold over 36,000 affordable homes in the provinces of Cavite and Iloilo. Pro-Friends’ flagship and largest project is Lancaster New City, whose 1,600 hectares spans the areas of Kawit, Imus, and General Trias in Cavite Province.

In 2016, Philippine AXA Life Insurance Corp. ranked second among life insurance companies in the country, in terms of premium income. It is part of the AXA Group, which has a strong presence in the financial protection business, and is active across all five continents in 64countries.

Through its equity stake in AXA Philippines, GT Capital continues to have an indirect interest in Charter Ping An Insurance Corp. which ranked fifth among non-life insurance companies in terms of gross premium written, and fourth based on net premium written in 2016.

Last year, GT Capital became a strategic investor of Metro Pacific Investments Corp. by acquiring a 15.55 percent stake in MPIC. This made GT Capital the second largest shareholder of the infrastructure conglomerate.