Japanese credit agency assigns AEV investment-grade rating

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), which cited the conglomerate’s growing earnings contribution from banking, infrastructure, food and beverage, and digital businesses as the group diversifies beyond power generation.

In a statement on Tuesday, JCR said AEV maintains a “strong and stable business base and cash flow generation,” supported by the group’s diversified portfolio and disciplined financial management.

The Japanese credit rating agency noted that non-power businesses accounted for 42% of AEV’s beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, reflecting the conglomerate’s long-term strategy of broadening its earnings base.

JCR cited the continued contribution of Aboitiz Power Corp. as the group’s core earnings platform, while highlighting the growing role of Union Bank of the Philippines, Aboitiz InfraCapital, and Coca-Cola Europacific Aboitiz Philippines in expanding the conglomerate’s exposure to infrastructure and consumer-driven sectors.

The agency also pointed to AEV’s investments in renewable energy, liquefied natural gas (LNG), airports, water systems, and digital infrastructure as supportive of its long-term growth strategy.

JCR said the planned strategic partnership between Aboitiz InfraCapital and Global Infrastructure Partners is expected to strengthen the group’s infrastructure business.

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

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

The agency added that the group’s earnings stability is supported by long-term contracted power sales, diversified operations, and disciplined financial policies.

JCR also cited the conglomerate’s ongoing transition toward a more diversified energy portfolio, noting that new investments are increasingly focused on renewable energy and LNG projects aligned with the country’s long-term energy transition roadmap.

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

The rating agency likewise cited AEV’s liquidity profile, conservative leverage strategy, and stable cash flow generation as factors underpinning the investment-grade rating.

AEV shares rose 1.47% to P31 apiece on Tuesday. — Alexandria Grace C. Magno