GT Capital gets highest credit rating

MANILA, Philippines — GT Capital Holdings Inc. of the Ty Group received the highest credit rating for its P4 billion fixed rate bonds from local debt watcher Philippine Rating Services Corp. (PhilRatings).

GT Capital received a PRS Aaa, which indicates that the obligor’s capacity to meet its financial commitment on the obligation is “extremely strong.”

A stable outlook, meanwhile, means that the rating is likely to be maintained or to remain unchanged in the next 12 months.

“The assigned issue rating considers GT Capital’s investment portfolio, which is composed of companies with solid market position; strong ownership and management; and a healthy balance sheet,” PhilRatings said.

GT Capital is a major listed Philippine conglomerate with interests in market-leading businesses in banking; automotive assembly, importation, distribution, and financing; property development; life and general insurance; and infrastructure and utilities.

The group remained resilient through the challenges during the height of the COVID-19 pandemic.

Its banking arm, Metropolitan Bank and Trust Co. (Metrobank) is the second largest bank in the country with assets of P2.8 trillion.

Toyota Motor Philippines (TMP), the automotive arm, has remained the top vehicle brand in the country, despite strong competition from other recognized international auto brands.

TMP continued to dominate the market with a share of 50 percent in 2022.

The group’s insurance arm, Philippine AXA Life Insurance Corp. (AXA Philippines) is the third largest life insurer based on assets (P146.4 billion); fourth in terms of premium income (P24.2 billion); fifth in terms of net income (P2.5 billion); and 10th based on paid-up capital (P1 billion).

In 2016, GT Capital became a strategic investor in Metro Pacific Investments Corp. (MPIC) by acquiring a 15.55 percent stake in the company, making GT Capital the second largest shareholder of MPIC.

The Metro Pacific Group is one of the Philippines’ largest infrastructure conglomerates with a presence in high-growth infrastructure businesses, such as power, toll roads, water, healthcare, light rail, and logistics.

PhilRatings said its ratings are based on available information and projections at the time that the rating review was performed.

It shall continuously monitor developments relating to GT Capital and may change the rating at any time, should circumstances warrant a change.