GT Capital retains top rating, stable outlook on P15-B bonds

GT Capital Holdings Inc., the listed conglomerate founded by the late tycoon George Ty, maintained the top rating for its P15.1 billion outstanding bonds.

Local debt watcher Philippine Rating Services Corp. maintained a PRS Aaa rating for GT Capital’s bonds with a stable outlook.

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. PRS Aaa is the highest rating assigned by PhilRatings.

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 composed 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, PhilRatings said.

GTCAP’s subsidiaries are Federal Land, Toyota Motor Philippines Corp., Toyota Manila Bay Corp. and GT Capital Auto Dealership Holding Inc.

The company also has significant shareholdings in Metrobank; Metro Pacific Investments Corp., Philippine AXA Life Insurance Corp., Toyota Financial Services Philippines Corp. and Sumisho Motor Finance Corp..

Through its privately-held firm, Grand Titan Capital Holdings (Grand Titan), the Ty family continues to have significant control over GT Capital, in terms of ownership and management.

The Ty family has been a supportive and stabilizing influence for the GT Capital Group, PhilRatings said.

“The family has an established track record of growing market-leading businesses in key sectors of the Philippine economy, with an in-depth knowledge of the domestic business environment,” it said.

“The combination of strong majority shareholders and well-experienced management has enabled the GT Capital Group to enter into strategic partnerships with globally-recognized companies,” the debt watcher said.

GT Capital is also looking into mediumto long-term strategies for recovery moving forward.