JCR keeps Ayala’s rating at ‘A-’

MANILA, Philippines – Ayala Corp. held on to a “A-“ foreign currency long-term issuer rating from the Japan Credit Rating Agency (JCR), a vote of confidence in the conglomerate’s diversified business portfolio, steady earnings base and prudent financial management.

In its latest rating action, JCR reaffirmed Ayala’s rating with a stable outlook, citing the group’s position as one of the Philippines’ largest and most diversified business conglomerates.

READ: Ayala takes advantage of cheap yen in first Samurai loan

JCR noted that the Philippines’ oldest conglomerate’s investments span a wide range of sectors, including banking, real estate, telecommunications, renewable energy, healthcare, mobility, logistics, fintech, industrial technologies and education, among others.

The credit rater said Ayala’s credit profile continues to be supported by the strength of its core businesses, particularly its interests in banking, property, telecommunications and renewable energy.

The agency also highlighted the conglomerate’s stable cash flow generation, growth prospects and healthy financial position.

“JCR’s continued confidence in Ayala, reflected in its A- rating, underscores the strength of our portfolio, and validates our sharpened focus on disciplined capital allocation, prudent risk management and balance sheet resilience,” said Juan Carlos L. Syquia, chief finance officer and chief risk officer of Ayala.

The reaffirmed rating comes as companies continue to navigate a volatile global market environment marked by economic uncertainties and shifting interest rate expectations.

According to Ayala, the rating supports its ability to access diversified funding sources and secure financing under competitive terms.

“The reaffirmed A- rating supports Ayala’s diversified financing opportunities to tap samurai hedged loans at attractive terms during current market uncertainties,” said Estelito C. Biacora, Ayala’s executive director and treasurer.

Samurai loans are Japanese yen-denominated borrowings, allowing borrowers to diversify funding sources and potentially lower financing costs.

Ayala also acknowledged the continued support of Mizuho Bank Ltd., which served as adviser during the JCR rating process.

The company said it would continue to prioritize financial flexibility, liquidity and disciplined balance sheet management while pursuing growth opportunities across its businesses. INQ