Makati City, July 16, 2013 – – Credit Rating and Investors Services Philippines, Inc (CRISP) affirms its  ‘AAA’ issuer rating on Ayala Land Inc.  (ALI).  The property developer is issuing a multi-tranche, unsecured, fixed rate bonds with an aggregate principal amount of up to P21,000,000,000.00.

CRISP is also affirming its current ‘AAA’ rating on ALI’s 3-year, unsecured, fixed rate P3 billion Homestarter Bonds that was issued in 2012.

CRISP believes that the following strengths of ALI support the assigned rating:

  1. Sustained, robust financial performance and high quality assets.During the last three years, ALI achieved an impressive annual growth rate in its core revenue averaging over 20%  In 2012, ALI’s total consolidated revenues for the year recorded a 23% increase which amounted to 5 billion, compared to 44.2 billion for 2011.

ALI’s first quarter performance in 2013 reflects a 38% increase compared to the same period last year with consolidated revenues at  18.5 billion, while its net income attributable to its equity holders went up 30% at 2.7 billion.

CRISP believes that ALI’s impressive record to generate income from its core business activities  and its portfolio of high quality assets will continue to provide more than adequate resources for ALI to service its debt.

  1. Market Leadership.  ALI’s market leadership is widely acknowledged in the development of high end residential subdivisions and condominium buildings. Its early flagship projects that include the Makati Commercial and Business District established the benchmark for commercial development.  Over the years, ALI has successfully established an overall market presence that now extends to the middle income and affordable housing segments;
  2. Effective land banking strategy.ALI’s portfolio of high quality and sizable land ensure its prospects for sustained leadership in the development of prime residential, commercial and business district development.  ALI’s recent acquisition of the Food Terminal Inc,  a 74-hectare property with close proximity to Makati and Bonifacio Global City, the two currently established business districts that host the country’s key business organizations and multinational companies is expected to boost ALI’s property development leadership as it fulfills the need of the growing Philippine business sector’s expansion requirements;

OUTLOOK: Stable. 

CRISP assigns a stable credit outlook for ALI’s issuer rating. CRISP continues to believe that ALI’s strong financial performance will continue and roll out of its new development projects will sustain its leadership position.