Japan Credit Rating Agency Ltd. (JCR) reinforced the investment-grade profile of Aboitiz Equity Ventures Inc. (AEV), the active portfolio manager of the Aboitiz Group, by assigning it an “A-” foreign currency long-term issuer rating with a “stable” outlook.

In a statement last Tuesday, May 26, AEV said the rating reflects the strength of its diversified portfolio, disciplined capital allocation strategy, and resilient earnings base.

“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 (CEO) Sabin M. Aboitiz.

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

According to AEV, the rating strengthens its position in global capital markets as the group continues to expand its portfolio.

With a more diversified earnings base and disciplined capital management, AEV said it remains well-positioned for long-term value creation amid an evolving economic landscape.

In its assessment, JCR highlighted AEV’s “strong and stable business base and cash flow generation,” while recognizing the group’s continued diversification beyond the power sector.

Non-power businesses accounted for 42 percent of AEV’s beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025 as part of the group’s long-term strategy of building a more balanced and resilient earnings portfolio.

JCR cited the continued strength of Aboitiz Power Corp. (AboitizPower) as the group’s core earnings platform while noting the growing contribution of Union Bank of the Philippines (UnionBank), Aboitiz InfraCapital Inc. (AIC), and Coca-Cola Europacific Aboitiz Philippines (CCEAP) in broadening AEV’s exposure to infrastructure and consumer-driven sectors.

It also recognized AEV’s investments in renewable energy (RE), liquefied natural gas (LNG), airports, water infrastructure, and digital infrastructure as supportive of its long-term growth strategy.

The report likewise cited the planned strategic partnership between AIC and Global Infrastructure Partners (GIP) as a positive development for the group’s infrastructure platform.

The “A-” rating reflects JCR’s expectation that AEV will continue to maintain a sound financial position despite global market volatility, elevated fuel prices, and geopolitical uncertainty.

According to JCR, the group’s earnings stability is supported by long-term contracted power sales, diversified operating platforms, and disciplined financial policies.

JCR likewise recognized the group’s ongoing transition toward a more diversified energy portfolio, noting that new investments are increasingly focused on RE and LNG in line with the Philippines’ long-term energy transition roadmap.

The rating affirms AEV’s position as one of the country’s leading conglomerates, supported by stable cash flow generation from its power business and the growing contribution of its infrastructure, banking, food and beverage, and real estate platforms.

JCR cited the group’s prudent financial management, sound liquidity profile, and conservative leverage strategy as key factors underpinning the rating.- James A. Loyola