Aboitiz Equity Ventures, Inc. (AEV), the active portfolio manager of the Aboitiz Group, has secured an 'A-' foreign currency long-term issuer rating with a 'Stable' outlook from Japan Credit Rating Agency, Ltd. (JCR). This rating reinforces the Group's investment-grade profile and reflects the strength of its diversified portfolio, disciplined capital allocation strategy, and resilient earnings base.
JCR Highlights Strong Business Base
In its assessment, JCR highlighted AEV's 'strong and stable business base and cash flow generation,' while recognizing the Group's continued diversification beyond power. Non-power businesses accounted for 42 percent of AEV's beneficial EBITDA in 2025, reflecting the Group's long-term strategy of building a more balanced and resilient earnings portfolio.
Growing Contributions from Non-Power Segments
The agency cited the continued strength of AboitizPower as the Group's core earnings platform while noting the growing contribution of Union Bank of the Philippines, Aboitiz InfraCapital, and Coca-Cola Europacific Aboitiz Philippines in broadening AEV's exposure to infrastructure and consumer-driven sectors.
JCR also recognized AEV's investments in renewable energy, LNG, airports, water infrastructure, and digital infrastructure as supportive of its long-term growth strategy. The report referenced the planned strategic partnership between Aboitiz InfraCapital and Global Infrastructure Partners as a positive development for the Group's infrastructure platform.
Resilient Financial Position Amid Volatility
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 the agency, 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. The agency noted that new investments are increasingly focused on renewable energy and LNG, in-line with the Philippines' long-term energy transition roadmap.
Key Factors Underpinning the Rating
The rating affirms AEV's position as one of the Philippines' 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.
JCR, one of Japan's leading credit rating agencies, is internationally recognized by investors and financial institutions as an independent assessor of corporate creditworthiness and financial resilience.
Management Comments
'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 CEO 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.
The rating strengthens AEV's position in global capital markets as the Group continues to expand its portfolio. With a more diversified earnings base and disciplined capital management, AEV is well positioned for long-term value creation amid an evolving economic landscape.
