According to domestic credit watcher PhilRatings, with 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 obligation extremely strong.
The rating reflects ALI's solid brand equity and seasoned management, strong profitability, cash flow and liquidity as well as the company's sound capitalization structure. The rating also considers the relatively positive outlook for the Philippine property sector in the short- to medium-term.
"The Ayala brand provides a premium and is a major competitive advantage over other domestic property companies. Management's track record spans decades, enabling it to take advantage of industry upturns while anticipating and weathering difficult challenges," PhilRatings said.
PhilRatings noted that the company's balance sheet remains healthy, with much untapped absorptive capacity to support ALI's aggressive growth plans in the coming years.
Strong cash flows from the pre-selling of various residential launches, as well as proceeds from the company's recent notes issue brought cash and cash equivalents to P25.6 billion as of end-March 2011.
ALI reported a 33% growth in net income for the first quarter this year to P1.6 billion as revenues rose 15% to P10.6 billion.
The company is pursuing a "5-10-15" plan, by which it intends to achieve, within five years or by 2014, P10 billion in after-tax income and a return on equity of 15%.
The Philippine Star
By: Zinnia B. Dela Peña
08 July 2011