GT Capital wins investment-grade Japan credit rating

Insider Spotlight

• GT Capital became one of only seven Philippine institutions, including the national government, to receive a credit rating from Japan Credit Rating Agency.
• The A- investment-grade rating could help the conglomerate tap Japanese investors and diversify its funding sources.
• JCR cited the strength of GT Capital’s core businesses, led by Metrobank and Toyota Motor Philippines, as key drivers of the rating.

GT Capital Holdings Inc. has won an investment-grade credit rating from Japan’s leading ratings agency, giving the Ty family-led conglomerate another avenue to raise money overseas as it expands its access to Japanese investors.

Japan Credit Rating Agency (JCR) assigned GT Capital an A- foreign currency long-term issuer rating with a stable outlook, citing the group’s diversified businesses, resilient cash generation and solid financial position. 

The milestone makes GT Capital one of only seven Philippine institutions, including the Republic of the Philippines, to receive a credit rating from JCR.

Carmelo Maria Luza Bautista

GT Capital president 

Core businesses underpin rating

JCR said the rating reflects GT Capital’s balanced portfolio and the strong market positions of its flagship businesses, including Metropolitan Bank & Trust Co. (Metrobank), Toyota Motor Philippines Corp., GT Capital Auto and Mobility Holdings Inc., and Toyota Financial Services Philippines Corp. 

The agency also cited the conglomerate’s stable cash flows and solid balance sheet in assigning the investment-grade rating.

Access to Japanese capital

Chief financial officer and treasurer George S. Uy-Tioco Jr. said the rating validates GT Capital’s financial resilience while broadening its funding options. 

He said it also builds on the group’s longstanding partnerships with major Japanese companies, including Toyota Motor Corp., Nomura Real Estate, ORIX Metro, and Mitsui & Co. An A- issuer rating is considered investment grade and signals a strong capacity to meet long-term financial obligations. 

Founded in 1985, JCR is Japan’s largest credit rating agency and provides ratings for more than 60 percent of the country’s publicly rated issuers, including about 70 percent of its financial institutions.

—Edited by Miguel R. Camus