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Thursday, January 11, 2001
 
AC ( 01/11/2001 : BW )
Ayala Corp.'s diversified portfolio which helped cushion the effects of the current economic downturn was cited by local credit rating agency Philippine Ratings Services Corp. (Philratings) when it maintained its positive credit rating for the conglomerate. Philratings has given Ayala Corp.'s 1-B Philippine peso ($19-M at PhP51.064=$1) long-term commercial paper a PRS Aaa rating giving the debt instrument the smallest degree of investment risk. "Interest payments are protected by a large or by an exceptionally stable margin and the principal is secured. While the various protective elements are likely to change, such changes that can be visualized are most unlikely to impair the fundamentally strong position of such issues," it said. Philratings added the rating also reflects the dominant position of the group's major subsidiaries which include Ayala Land Inc. (ALI), Bank of the Philippine Islands, Globe Telecom and Purefoods. The ratings agency likewise recognized the positive performance of its property arm ALI despite the downturn in the property market given its diversified portfolio -- which ranged from residential subdivisions to malls, office buildings and industrial parks. BPI's profitability, however, has declined due to narrowing spreads and was alongside he general slump in the banking industry. "The bank, however, continues to have above-average earnings performance relative to other major banks," Philratings said. It attributed the bank's above-average performance to its diversified banking operations similar to sister firm ALI. "BPI's merger with Far East Bank and Trust Co. is expected to help BPI, the surviving entity compete more effectively in this period of industry consolidation," Philratings said. The ratings agency also said Pure Foods Corp. is expected to keep its dominant position in these segments given its proven brand name. Purefoods dominates the refrigerated meats and canned good segments. Likewise, Globe Telecom's dominance in the digital sector is seen to be tested with Smart Communication's aggressive expansion.

- posted by StockMarket @ 2:28 PM


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