GT Capital’s ₱15-B bonds given top rating

GT Capital Holdings, Inc., the holding company of the family of the late Dr. George Ty, has maintained the highest rating of PRS Aaa with a Stable Outlook for its outstanding bonds worth a total of ₱15.1 billion.

Philippine Rating Services Corporation (PhilRatings) said 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.

A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

“The assigned issue ratings take into account GT Capital’s investments portfolio which is comprised of companies with solid market positions, the strong strategic direction provided by its shareholders combined with the solid experience of its management, and sound capitalization structure,” said PhilRatings.

It added that, “These core credit strengths are seen to counterbalance increased risks due to the ongoing community quarantine and COVID-19 pandemic, and serve as a strong base for recovery as the impact of these developments gradually wanes over time.”

Although the underlying business of Metropolitan Bank and Trust Company (Metrobank) remains strong, it has taken the prudent approach of increasing its provisions to cover anticipated risks. The bank’s strong capital position is seen as a significant buffer against the current crisis.

Toyota Motor Philippines (TMP) has remained the top vehicle brand in the country and concerns on limited public transport due to community quarantine and social distancing requirements serve to emphasize the transportation industry’s vital role in the re-opening of the Philippine economy.