Ayala Land Inc. (ALI) will be issuing P1 billion in short-term commercial papers (STCPs). “The STCPs have been rated PRS 1,†PhilRatings announced.
PRS 1 is the highest possible rating on PhilRatings’ short-term credit rating scale. A PRS 1 (Best Grade) rating means that ALI has the strongest capability for timely payment of its STCP issue on both interest and principal. Repayment capacity will normally be evidenced by: a leading market position, conservative capitalization structure, broad margins in earnings coverage of fixed financial charges, high internal cash generation, and established sources of alternate liquidity.
ALI’s substantial portfolio of rental properties and a strong brand equity supporting sales of development properties reinforce expectations of stable profitability and cash flow generation despite the inherent volatility in the property development sector. Management’s strategy of enhancing its sources of stable income streams, its prudent approach in development activities, judicious use of debt, and initiatives to control costs and improve asset utilization all contribute to an expectation of ALI’s strong credit measures being sustained going forward.