Posted on January
04, 2015 10:24:00 PM [ BusinessWorld
Online ]
AYALA LAND, Inc.’s (ALI) outstanding
P21-billion bonds issued last year secured another high rating from a separate
credit ratings agency, the Philippine Rating Services Corp. (PhilRatings).
“Obligations rated PRS Aaa are of the
highest quality with minimal credit risk. The obligor’s capacity to meet its
financial commitment on the obligation is extremely strong,” PhilRatings said
in a statement over the weekend.
This is the highest rating granted by
the agency, which noted Ayala Land’s “continuously growing profitability,
coupled with healthy cash flow generation and high cash reserves.”
PhilRatings also cited the company’s
“sound capitalization” with a manageable debt level and mix; well-diversified
portfolio with a “sizable and strategic land bank” for future expansion and
complemented by “solid brand equity and a highly experienced management team”;
as well as supportive outlook for the real estate industry, backed by sound
economic fundamentals.
“The bonds were initially rated by
another credit rating agency in 2013 but credit rating monitoring duties for
these bonds going forward have since been transferred to PhilRatings for the
purpose of consolidating all rating requirements under a single rating agency,”
the statement read.
In September 2013, Credit Rating and
Investors Services Philippines, Inc. said it reaffirmed its AAA issuer rating
on Ayala Land, with a stable outlook.
However, PhilRatings noted that its
ratings are based only on available information and projections at the time
that the rating review was performed.
“PhilRatings shall continuously
monitor developments relating to ALI and may change the ratings at any time,
should circumstances warrant a change.”
Ayala Land is one of the largest real
estate firms in the country and competes in the high-end, middle-income and
affordable housing segments, as well as in traditional office, business process
outsourcing office and shopping center leasing, hotel operations, and construction.
As of end-2013, the company’s land
bank across the country spans 8,453 hectares.
Ayala Land’s nine-month net income
jumped by an annual 25% to P10.8 billion, while consolidated revenue similarly
rose 20% to P68.3 billion.
“The company’s high income translates
to a substantial amount of cash flow and debt servicing capacity,” PhilRatings
said.
Shares in the company ended trading on
Dec. 29 at P33.70 apiece, down 20 centavos or 0.59%.
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