AEV secures ‘A-’ investment-grade rating from Japan’s JCR

Aboitiz Equity Ventures Inc. (AEV) has secured an “A-” foreign currency long-term issuer rating with a “Stable” outlook from Japan Credit Rating Agency Ltd. (JCR), reinforcing the conglomerate’s investment-grade profile and diversified earnings base.

JCR, one of Japan’s leading credit rating firms established in 1985, evaluates the creditworthiness of governments, banks, corporations, and debt instruments, similar to global agencies such as Moody’s, S&P Global Ratings, and Fitch Ratings. Credit ratings are widely used by investors and lenders as indicators of financial strength and repayment capacity and generally influence borrowing costs and access to capital markets.

In its assessment, JCR cited AEV’s “strong and stable business base and cash flow generation,” while recognizing the group’s continued diversification beyond its power business. Non-power businesses accounted for 42 percent of AEV’s beneficial EBITDA in 2025, reflecting the group’s strategy of building a more balanced earnings portfolio.

The “A-” grade assigned by JCR falls within the investment-grade category, signaling relatively low credit risk to investors, while the “Stable” outlook indicates the agency does not expect the rating to change over the next one to two years.

JCR identified AboitizPower as the group’s core earnings platform while noting the growing contributions of Union Bank of the Philippines, Aboitiz InfraCapital, and Coca-Cola Europacific Aboitiz Philippines in expanding exposure to infrastructure and consumer-driven sectors.

The rating agency also recognized AEV’s investments in renewable energy, liquefied natural gas, airports, water infrastructure, and digital infrastructure as supportive of long-term growth. JCR likewise cited the planned strategic partnership between Aboitiz InfraCapital and Global Infrastructure Partners as a positive development for the group’s infrastructure platform.

According to JCR, the “A-” rating reflects expectations that AEV will maintain a sound financial position despite global market volatility, elevated fuel prices, and geopolitical uncertainty. The agency said the group’s earnings stability is supported by long-term contracted power sales, diversified operating platforms, and disciplined financial policies.

JCR also noted AEV’s transition toward a more diversified energy portfolio, with new investments increasingly focused on renewable energy and LNG projects aligned with the Philippines’ long-term energy transition roadmap. The rating agency further cited the group’s prudent financial management, sound liquidity profile, and conservative leverage strategy as key factors underpinning the rating.

“This rating reflects the strength of our diversified portfolio, the resilience of our operating businesses, and the discipline of our long-term approach to growth,” said Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz.

“As we continue to scale our businesses, we remain focused on creating sustainable long-term value while maintaining financial prudence and operational discipline,” he added.

Last month, AEV reported a 14 percent increase in consolidated EBITDA to P95.4 billion in 2025. The company highlighted strong gains in other business units, with its infrastructure and food and beverage segments expanding by 89 percent and 20 percent, respectively, signaling a more balanced earnings base.