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Manila Bulletin devider Business devider The Stock Market devider Sy family's SMIC clinches top credit rating as profits hit ₱124 billion

Sy family's SMIC clinches top credit rating as profits hit ₱124 billion

Published Jul 3, 2026 01:27 pm
Frederic C. DyBuncio
Frederic C. DyBuncio
Sy-led SM Investments Corp. (SMIC) maintained its top-tier credit rating for its ₱7.5 billion outstanding fixed-rate bonds as robust earnings and aggressive expansion in its retail, banking, and property units shore up its financial stability.
Philippine Rating Services Corp. (PhilRatings) kept SMIC’s rating at PRS Aaa, the highest investment grade on its scale, carrying a stable outlook. The rating indicates that the company possesses an extremely strong capacity to meet its financial obligations, with minimal credit risk over the next 12 months.
PhilRatings cited the conglomerate’s dominant market share, ample liquidity, and sound capital structure as key drivers for the decision. The ratings agency expects SMIC to maintain its upward trajectory, supported by steady revenue growth from ongoing expansion initiatives.
The company continues to insulate itself from external macroeconomic risks by preserving financial flexibility through internal cash generation, alongside opportunistic borrowings and capital market issuances.
The conglomerate commands some of the most lucrative sectors of the economy. Its retail arm, SM Retail Inc., stands as the country’s largest and most diversified merchandising business. Its real estate vehicle, SM Prime Holdings Inc., operates as the nation's biggest mall operator and integrated property developer.
In banking, the company controls BDO Unibank Inc., the Philippines’ largest lender by assets, alongside China Banking Corp. The group also maintains a diverse portfolio of equity stakes in logistics provider 2GO Group Inc., Goldilocks Bakeshop Inc., Belle Corp., the Neo Group, Airspeed, and Philippine Geothermal Production Company.
Financially, SMIC has shown consistent momentum. Net income after tax increased by eight percent to ₱123.8 billion in 2025, yielding a net profit margin of 18.2 percent. Consolidated revenues rose 4.1 percent to ₱681.7 billion during the same period, heavily driven by its core merchandise sales.
That growth carried into the first quarter of 2026. Net income for the first three months of the year rose 5.7% year-on-year to ₱29.2 billion, pushing its net profit margin to 18.3 percent on the back of stronger top-line performance.
The company's balance sheet remains highly liquid, with positive net operating cash flows comfortably covering capital expenditure and debt obligations. Cash and cash equivalents reached ₱98.2 billion at the end of March 2026.
Its current ratio, a gauge of short-term liquidity, has stayed above 1.0x since 2022 and was clocked at 1.1x during the first quarter. Furthermore, leverage remained disciplined, with the debt-to-equity ratio holding steady at 0.5x as of March 2026, improving from 0.6x at the end of 2024.

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