Ayala Corp.'s proposed 7-year bonds get PRS Aaa rating

The proposed seven-year fixed rate bonds of Ayala Corporation obtained the highest issue credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings).

In a disclosure to the Philippine Stock Exchange on Thursday, Ayala's proposed bonds of up to P10 billion, the first tranche in a P20-billion float, was given a credit rating of PRS Aaa.

"Obligations rated PRS Aaa are of the highest quality with minimal credit risk, with the obligor's capacity to meet its financial commitment on the obligations extremely strong," the company said.

The conglomerate noted the rating reflected the following considerations:

• Strong brand quality and leading market position for Ayala's core business

• Well-defined strategy, backed by management team with a solid track record

• Sustained profitability

• Healthy cash flows and financial flexibility

"Obligations rated PRS Aaa are of the highest quality with minimal credit risk, with the obligor's capacity to meet its financial commitment on the obligations extremely strong," the company said.

The proceeds of the planned offer are intended to refinance the company’s peso-denominated obligations and debt with early redemption options, according to the company's prospectus. – Ted Cordero/VDS, GMA News