DOWNLOAD
Archives: CreditSights Issuer List
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025While expected profit margin compression is material and Toyota management has disclosed few details of its tariff risk mitigation strategy to improve or restore profitability, the company’s competitive position remains strong with volume growth expected in each of its major markets this year. Unlike many of its peers, its EV investments have been modest to date as it has focused on hybrids and flexible plant manufacturing, which we believe should help it avoid material near-term EV investment write-offs in the US. While we expect the company’s profit margin to fall below the rating downgrade triggers in FY26, we do not expect negative rating actions in the near term as further tariff relief is likely with the renegotiation of the US-Mexico-Canada Agreement in 2026.
Business Description
AS OF 17 Nov 2025- Toyota Motor Corp. (TMC) engages in the manufacture and sale of motor vehicles and parts. It operates through the following segments: Automotive, Financial Services, and All Other. The Automotive segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related vehicle parts and accessories. Toyota is also involved in the development of intelligent transport systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchased by dealers. The company was founded by Kiichiro Toyoda on August 28, 1937, and is headquartered in Toyota, Japan.
- Toyota Financial Services Corporation (TFSC), a wholly owned subsidiary of TMC, oversees the management of Toyota's finance companies worldwide. Toyota Motor Credit Corporation (TMCC) is the company’s principal financial services subsidiary in the United States. Under terms of the credit support agreement between TFSC and TMCC, TFSC agrees to: (1) maintain 100% ownership of TMCC; (2) cause TMCC and its subsidiaries to have a tangible net worth of at least $100,000; (3) make sufficient funds available to TMCC so that it will be able to service the obligations arising out of its own bonds, debentures, notes and other investment securities and commercial paper. The terms of the credit support agreement between TMC and TFSC are very similar to the terms of the TFSC and TMCC credit support agreement.
Risk & Catalysts
AS OF 17 Nov 2025Toyota has reaffirmed its FY2026 outlook, holding its consolidated vehicle sales target at 9.8 mn units and total revenue at ¥49.0 tn, representing YoY increases of 5% and 2%, respectively. The forecast for operating income was revised up from ¥3.2 tn last quarter to ¥3.4 tn. The revised operating income guidance represents a 29% YoY decline, reflecting the full-year impact of US tariffs totaling ¥1.45 tn, a ¥555 bn negative effect from yen appreciation, and an additional ¥470 bn in higher material costs.
Management stated these headwinds are expected to be partially offset by improvement initiatives totaling ¥910 bn, which include higher sales volume, enhanced product mix, cost reductions, and expanded value chain profit. The operating margin is projected to contract to 6.9% for FY2026, down from 10.0% in FY2025, with tariffs accounting for the largest share of the decline.
Management clarified that the tariff assumptions for FY2026 include a 25% rate on Japanese exports to the US from April through September 15, 2025, dropping to 15% for the remainder of the fiscal year, and a 25% rate on exports from Canada and Mexico for the full year.
Key Metric
AS OF 17 Nov 2025| JPY bn | FY22 | FY23 | FY24 | FY25 | LTM F2Q26 |
|---|---|---|---|---|---|
| Automotive Revenue | 28,606 | 33,777 | 41,081 | 42,996 | 44,111 |
| EBIT | 2,519 | 2,486 | 4,890 | 4,047 | 3,475 |
| EBIT Margin | 8.0% | 6.7% | 10.8% | 8.4% | 4.8% |
| EBITDA | 3,526 | 3,671 | 6,159 | 5,408 | 4,820 |
| EBITDA Margin | 11.2% | 9.9% | 13.7% | 11.3% | 7.6% |
| Total Liquidity | 15,864 | 10,090 | 12,401 | 11,595 | 11,595 |
| Net Debt | (1,719) | (2,825) | (4,025) | (3,355) | (3,355) |
| Total Debt | 2,580 | 2,724 | 2,868 | 2,736 | 2,736 |
| Gross Leverage | 0.7x | 0.7x | 0.5x | 0.5x | 0.6x |
| Net Leverage | -0.5x | -0.8x | -0.7x | -0.6x | -0.7x |
CreditSight View Comment
AS OF 08 Jan 2026We reiterate our Underperform recommendation on notes of Toyota Motor Co and Toyota Motor Credit Corporation based primarily on relative value, although we consider the Toyota bond complex to be a relatively safe haven for long-term investors.
Recommendation Reviewed: January 08, 2026
Recommendation Changed: May 09, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025While expected profit margin compression is material and Toyota management has disclosed few details of its tariff risk mitigation strategy to improve or restore profitability, the company’s competitive position remains strong with volume growth expected in each of its major markets this year. Unlike many of its peers, its EV investments have been modest to date as it has focused on hybrids and flexible plant manufacturing, which we believe should help it avoid material near-term EV investment write-offs in the US. While we expect the company’s profit margin to fall below the rating downgrade triggers in FY26, we do not expect negative rating actions in the near term as further tariff relief is likely with the renegotiation of the US-Mexico-Canada Agreement in 2026.
Business Description
AS OF 17 Nov 2025- Toyota Motor Corp. (TMC) engages in the manufacture and sale of motor vehicles and parts. It operates through the following segments: Automotive, Financial Services, and All Other. The Automotive segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related vehicle parts and accessories. Toyota is also involved in the development of intelligent transport systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchased by dealers. The company was founded by Kiichiro Toyoda on August 28, 1937, and is headquartered in Toyota, Japan.
- Toyota Financial Services Corporation (TFSC), a wholly owned subsidiary of TMC, oversees the management of Toyota's finance companies worldwide. Toyota Motor Credit Corporation (TMCC) is the company’s principal financial services subsidiary in the United States. Under terms of the credit support agreement between TFSC and TMCC, TFSC agrees to: (1) maintain 100% ownership of TMCC; (2) cause TMCC and its subsidiaries to have a tangible net worth of at least $100,000; (3) make sufficient funds available to TMCC so that it will be able to service the obligations arising out of its own bonds, debentures, notes and other investment securities and commercial paper. The terms of the credit support agreement between TMC and TFSC are very similar to the terms of the TFSC and TMCC credit support agreement.
Risk & Catalysts
AS OF 17 Nov 2025Toyota has reaffirmed its FY2026 outlook, holding its consolidated vehicle sales target at 9.8 mn units and total revenue at ¥49.0 tn, representing YoY increases of 5% and 2%, respectively. The forecast for operating income was revised up from ¥3.2 tn last quarter to ¥3.4 tn. The revised operating income guidance represents a 29% YoY decline, reflecting the full-year impact of US tariffs totaling ¥1.45 tn, a ¥555 bn negative effect from yen appreciation, and an additional ¥470 bn in higher material costs.
Management stated these headwinds are expected to be partially offset by improvement initiatives totaling ¥910 bn, which include higher sales volume, enhanced product mix, cost reductions, and expanded value chain profit. The operating margin is projected to contract to 6.9% for FY2026, down from 10.0% in FY2025, with tariffs accounting for the largest share of the decline.
Management clarified that the tariff assumptions for FY2026 include a 25% rate on Japanese exports to the US from April through September 15, 2025, dropping to 15% for the remainder of the fiscal year, and a 25% rate on exports from Canada and Mexico for the full year.
Key Metric
AS OF 17 Nov 2025| $ mn | FY22 | FY23 | FY24 | FY25 | F2Q26 |
|---|---|---|---|---|---|
| Total Company Earning Assets | 117,659 | 120,018 | 129,707 | 132,385 | 131,042 |
| Cash and Investments | 7,670 | 6,398 | 8,570 | 10,769 | 8,904 |
| Total Liquidity | 36,070 | 33,498 | 37,570 | 37,569 | 37,704 |
| Unsecured Debt | 82,288 | 78,949 | 88,083 | 90,028 | 86,600 |
| Secured Debt | 26,864 | 32,736 | 34,337 | 37,717 | 36,352 |
| Total Debt | 109,152 | 111,685 | 122,420 | 127,745 | 122,952 |
| Allowance % Retail Rece. | 1.66% | 1.83% | 1.81% | 1.81% | 1.68% |
| Allowance / Net Charge-offs | 6.68x | 3.03x | 2.32x | 2.06x | 2.02x |
| Net Charge-offs % Avg. Receivable | 0.26% | 0.63% | 0.82% | 0.88% | 0.83% |
| 30+ Day Delinquency Rate | 1.8% | 2.3% | 2.6% | 2.5% | 2.5% |
CreditSight View Comment
AS OF 13 Jan 2026We reiterate our Underperform recommendation on notes of Toyota Motor Co and Toyota Motor Credit Corporation based primarily on relative value, although we consider the Toyota bond complex to be a relatively safe haven for long-term investors.
Recommendation Reviewed: January 13, 2026
Recommendation Changed: May 09, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025Management expects positive US sales momentum to continue in F2H25. China retail sales showed signs of stabilizing last quarter based on strong demand for the N7 midsize EV sedan, prompting management to raise its full-year China retail sales target to reflect positive retail sales growth in F2H25. Sustained positive retail sales growth in the US and China in the back half of FY25 would increase our confidence in the company’s ability to achieve automotive segment profitability (ex. tariffs) in FY26 considering they are Nissan’s largest markets by volume and have historically been the company’s largest automotive profit contributors.
Business Description
AS OF 17 Nov 2025- Nissan, with headquarters in Yokohama, Japan, is a leading global automotive manufacturer with a market presence in many countries around the globe. The company’s growth investments are focused primarily on Japan, North America, and China, core markets with large profit pools in which Nissan has a meaningful market share. The company’s business in China is conducted through a joint venture with Dongfeng Motor Corporation.
- Nissan’s Sales Financing segment supports the sale of its vehicles by providing financing solutions to its customers and dealers. To enhance their creditworthiness, Nissan maintains keepwell (support) agreements with its wholly owned financial subsidiaries including Nissan Motor Acceptance Corporation (NMAC) in the United States and Nissan Financial Services (NFS) in Japan.
- The Renault-Nissan-Mitsubishi Alliance was established in 1999 to enhance member company scale in product development and raw material purchasing. The alliance includes equity participation, which led to Nissan holding ownership stakes in Renault (15% non-voting) and Mitsubishi (34%) and Renault holding an ownership stake in Nissan (43%). The Alliance’s automobile production volume is the third largest globally behind Toyota and Volkswagen.
Risk & Catalysts
AS OF 17 Nov 2025Nissan anticipated a consolidated operating loss of ¥275 bn in FY25, with an operating margin of -2.4%. Management confirmed the operating loss outlook reflects the full-year tariff cost, which was revised down from ¥300 bn last quarter to ¥275 bn following the reduction in the tariff rate on Japanese vehicles from 25% to 15%, along with adjustments in manufacturing locations and supplier sourcing. Management maintains its target of returning to positive automotive operating profit and free cash flow by FY26, excluding tariffs.
The Re:Nissan plan targets ¥500 bn in cost savings by FY27, evenly split between variable and fixed costs, and includes reducing the number of manufacturing sites and workforce rationalization. The company has generated 4,500 cost savings ideas for a potential impact of ¥200 bn, up from ¥150 bn last quarter and approaching its variable cost reduction target of ¥250 bn. Nissan plans to end production at its sixth of seven plants slated for closure at the end of November 2025. The company aims to exceed ¥150 bn savings by the end of FY25 and surpass ¥250 bn in fixed costs savings (its target) by the end of FY26 (March 2027).
Key Metric
AS OF 17 Nov 2025| JPY bn | FY21 | FY22 | FY23 | FY24 | LTM F2Q25 |
|---|---|---|---|---|---|
| Revenue | 7,393 | 9,573 | 11,524 | 11,371 | 10,957 |
| EBIT | (78) | 218 | 394 | (78) | (274) |
| EBIT Margin | (1%) | 2% | 3% | (1%) | (2%) |
| EBITDA | 211 | 535 | 745 | 286 | 31 |
| EBITDA Margin | 2.9% | 5.6% | 6.5% | 2.5% | 1.1% |
| Total Liquidity | 3,601 | 3,658 | 4,196 | 4,272 | 2,790 |
| Net Debt | (728) | (1,213) | (1,546) | (1,498) | (991) |
| Total Debt | 973 | 687 | 468 | 661 | 1,199 |
| Gross Leverage | n/m | 1.3x | 0.6x | 2.3x | 39.2x |
| Net Leverage | -3.4x | -2.3x | -2.1x | -5.2x | -32.4x |
CreditSight View Comment
AS OF 08 Jan 2026We reiterated our Market perform recommendation on Nissan Motor and Nissan Motor Acceptance Co. (NMAC) notes based on relative value, the company’s weak near-term automotive profit outlook, partially offset by improved retail sales trends and increased visibility into near-term Re: Nissan cost savings initiatives.
Recommendation Reviewed: January 08, 2026
Recommendation Changed: July 16, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025Honda is only the second automaker in our coverage universe to lower full-year operating profit guidance this quarter. While Honda expects to benefit from a 14% reduction in anticipated tariff costs compared to last quarter, management acknowledged its plans to raise US vehicles prices to mitigate tariffs have been constrained by muted competitor pricing actions. The low historic profit margins and negative outlooks by S&P and Fitch increase the importance of Honda’s tariff mitigation strategies, which have thus far been vague and focused on increasing shifts at US plants, moving production of the Civic hybrid to the US, and securing more components locally.
Business Description
AS OF 17 Nov 2025- Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Products and Other Businesses segment offers power products and relevant parts.
- American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Non-controlling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). Honda Motor Co. (HMC) maintains Keep Well (support) agreements with its North American finance subsidiaries, AHFC and HCFI. Under the Keep Well agreements, HMC agrees to (1) maintain at least 80% ownership in AHFC and HCFI, (2) ensure AHFC and HCFI maintain a positive net worth, and (3) ensure both AHFC and HCFI have sufficient liquidity to meet their debt payment obligations.
Risk & Catalysts
AS OF 17 Nov 2025Management affirmed its FY26 wholesale unit guidance for the Motorcycles and Power Products segments but lowered its Automobiles segment guidance by 8% to 3.34 mn units. The lower Automobile segment guidance reflects an anticipated 10% YoY decline compared to FY25.
The lower FY26 automobile volume guidance in Asia is broadly split between China and other Asia, which management attributed to increased competitiveness, especially from Chinese OEMs in China and other Asian countries. Management stated it needs to focus its attention on the profitable models, stabilize and then increase volumes, and enhance the profitability of its ICE and hybrid vehicles by rationalizing fixed costs.
Management lowered its FY26 consolidated operating profit forecast from ¥700 bn last quarter to ¥550 bn. The downward revision is driven by lower automobile volumes, weaker pricing expectations, partially offset by a smaller currency headwinds and lower tariff impacts. Full-year tariff impacts are now expected to total ¥385 bn (~US$2.5 bn), down from its ¥450 bn (~US$2.9 bn) estimate last quarter, based primarily on the parts tariff offset expansion.
Key Metric
AS OF 17 Nov 2025| JPY bn | FY22 | FY23 | FY24 | FY25 | LTM F2Q26 |
|---|---|---|---|---|---|
| Revenue | 11,967 | 14,167 | 17,434 | 18,509 | 18,478 |
| EBIT | 741 | 612 | 1,219 | 899 | 646 |
| EBIT Margin | 6.2% | 4.3% | 7.0% | 4.9% | 3.1% |
| EBITDA | 1,334 | 1,294 | 1,964 | 1,630 | 1,367 |
| EBITDA Margin | 11.1% | 9.1% | 11.3% | 8.8% | 7.0% |
| Total Liquidity | 4,612 | 4,926 | 6,150 | 5,368 | 5,579 |
| Net Debt | (2,481) | (2,751) | (3,762) | (3,216) | (3,054) |
| Total Debt | 837 | 803 | 863 | 646 | 1,018 |
| Gross Leverage | 0.6x | 0.6x | 0.4x | 0.4x | 0.7x |
| Net Leverage | -1.9x | -2.1x | -1.9x | -2.0x | -2.2x |
CreditSight View Comment
AS OF 08 Jan 2026We reiterate our Underperform recommendation on Honda Motor Co. and American Honda Finance Corporation notes based on relative value, its weak consolidated operating profit outlook, and concerns about restoring its automobile business to profitability over the intermediate term.
Recommendation Reviewed: January 08, 2026
Recommendation Changed: May 15, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025Honda is only the second automaker in our coverage universe to lower full-year operating profit guidance this quarter. While Honda expects to benefit from a 14% reduction in anticipated tariff costs compared to last quarter, management acknowledged its plans to raise US vehicles prices to mitigate tariffs have been constrained by muted competitor pricing actions. The low historic profit margins and negative outlooks by S&P and Fitch increase the importance of Honda’s tariff mitigation strategies, which have thus far been vague and focused on increasing shifts at US plants, moving production of the Civic hybrid to the US, and securing more components locally.
Business Description
AS OF 17 Nov 2025- Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services.
- American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Non-controlling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). Honda Motor Co. (HMC) maintains Keep Well (support) agreements with its North American finance subsidiaries, AHFC and HCFI. Under the Keep Well agreements, HMC agrees to (1) maintain at least 80% ownership in AHFC and HCFI, (2) ensure AHFC and HCFI maintain a positive net worth, and (3) ensure both AHFC and HCFI have sufficient liquidity to meet their debt payment obligations.
Risk & Catalysts
AS OF 17 Nov 2025Management affirmed its FY26 wholesale unit guidance for the Motorcycles and Power Products segments but lowered its Automobiles segment guidance by 8% to 3.34 mn units. The lower Automobile segment guidance reflects an anticipated 10% YoY decline compared to FY25.
Management lowered its FY26 consolidated operating profit forecast from ¥700 bn last quarter to ¥550 bn. The downward revision is driven by lower automobile volumes, weaker pricing expectations, partially offset by a smaller currency headwinds and lower tariff impacts. Full-year tariff impacts are now expected to total ¥385 bn (~US$2.5 bn), down from its ¥450 bn (~US$2.9 bn) estimate last quarter, based primarily on the parts tariff offset expansion.
The lower FY26 automobile volume guidance in Asia is broadly split between China and other Asia, which management attributed to increased competitiveness, especially from Chinese OEMs in China and other Asian countries. Management stated it needs to focus its attention on the profitable models, stabilize and then increase volumes, and enhance the profitability of its ICE and hybrid vehicles by rationalizing fixed costs.
Key Metric
AS OF 17 Nov 2025| $ mn | FY22 | FY23 | FY24 | FY25 | F2Q26 |
|---|---|---|---|---|---|
| Total Company Earning Assets | 71,105 | 65,363 | 74,626 | 83,112 | 86,274 |
| Cash and Investments | 2,607 | 1,544 | 1,670 | 4,052 | 3,186 |
| Excess Liquidity | 9,607 | 8,544 | 8,670 | 11,052 | 10,186 |
| Unsecured Debt | 38,026 | 33,410 | 41,566 | 48,363 | 51,748 |
| Secured Debt | 8,888 | 6,927 | 9,351 | 12,384 | 14,202 |
| Total Debt | 46,914 | 40,337 | 50,917 | 60,747 | 65,950 |
| Allowance % Retail Rece. | 0.58% | 0.71% | 0.80% | 0.80% | 0.85% |
| Allowance / Net Charge-offs | 3.75x | 2.41x | 1.72x | 1.48x | 1.32x |
| Net Charge-offs % Avg. Receivable | 0.15% | 0.29% | 0.52% | 0.57% | 0.64% |
| 30+ Day Delinquency Rate | 1.1% | 1.2% | 1.2% | 1.4% | 1.6% |
CreditSight View Comment
AS OF 13 Jan 2026We reiterate our Underperform recommendation on Honda Motor Co. and American Honda Finance Corporation notes based on relative value, its weak consolidated operating profit outlook, and concerns about restoring its automobile business to profitability over the intermediate term.
Recommendation Reviewed: January 13, 2026
Recommendation Changed: May 15, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.PLDT
- Sector: Media and TelecommunicationsTechnologyTechnology Media and Telecommunications
- Sub Sector: Telecommunications
- Country: Philippines
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 17 Nov 2025PLDT’s FY24 and 1H25 results were stable as expected; we see a modestly improving FY25 credit outlook aided by resilient EBITDA growth and residual tower sales, which could offset persisting high capex.
A potential stake sale of the data center business could drive further deleveraging.
While the spillover of a PHP 33 bn capex overrun to FY25 could weigh on free cash flows, we draw mild comfort that it was likely not due to fraud but rather a management misstep.
Business Description
AS OF 17 Nov 2025- PLDT is a leading telecom operator in the Philippines, competing alongside its main rival Globe Telecom in a predominant duopoly.
- PLDT provides 2G/3G/4G mobile, fixed-line, broadband, enterprise data, and other digital services to retail and corporate customers.
- PLDT operates through 2 main business segments – “Wireless Services” and “Fixed Line Services”.
- Its “Wireless” segment offers mobile voice, mobile SMS, mobile data and mobile broadband services to retail customers in the Philippines. These services are marketed under the “Smart Postpaid”, “Smart Prepaid”, "Sun Postpaid" and “TNT Prepaid” brands.
- Its “Fixed Line Services” segment provides fixed line voice, corporate data and home broadband services to retail and corporate customers in the Philippines.
- PLDT commercially launched 5G services on a small-scale basis in Jul-2020. It currently has over 3,000 5G sites nationwide.
- PLDT maintains dominant market shares in the mobile, fixed line voice, and the home broadband spaces.
- PLDT is backed by three established corporate groups, namely First Pacific (~15% stake), NTT Corporation (~12% stake) and JG Summit Holdings (~7% stake).
Risk & Catalysts
AS OF 17 Nov 2025Aggressive expansion by new entrant DITO over the next 2-4 years could chew away at PLDT’s market share and restrain recoveries in average revenues per user (ARPU).
PLDT incurs significant capex that has restrained improvements in its leverage metrics and free cash flows. This is worsened by a recent capex overrun that has induced mild corporate governance uncertainties (though these have eased in recent months).
Consistently high dividend payouts could worsen PLDT’s already negative free cash flows.
PLDT is exposed to $/PHP depreciation risks ($300 mn 2050 bond is fully unhedged).
Key Metric
AS OF 17 Nov 2025| PHP bn | FY22 | FY23 | FY24 | 9M24 | 9M25 |
|---|---|---|---|---|---|
| Debt to Book Cap | 71.9% | 73.3% | 74.2% | 74.1% | 74.7% |
| Net Debt to Book Cap | 65.7% | 69.3% | 72.0% | 71.3% | 72.6% |
| Debt/Total Equity | 256.2% | 273.9% | 287.5% | 286.2% | 294.9% |
| Debt/Total Assets | 46.8% | 49.6% | 53.8% | 52.1% | 56.9% |
| Gross Leverage | 2.9x | 2.9x | 3.0x | 3.0x | 3.2x |
| Net Leverage | 2.7x | 2.8x | 2.9x | 2.9x | 3.1x |
| Interest Coverage | 7.4x | 6.5x | 6.1x | 6.2x | 5.5x |
| EBITDA Margin | 48.7% | 49.1% | 51.1% | 51.8% | 52.3% |
CreditSight View Comment
AS OF 08 Dec 2025We have a Market perform recommendation on PLDT and would avoid its 2050 bond. PLDT 2031 trades fairly to Globe 2030, Axiata 2030, and Bharti 2031. We do not like the PLDT 2050 that trades tight to other 2050 bonds in SSEA, including Reliance, Pertamina, and PLN. We are comfortable with PLDT’s sturdy credit profile aided by a resilient broadband business and tower sales, cushioning high capex and dividends. A minority stake sale of its data center business is also credit positive. Corporate governance fears have also eased post its capex overrun in end-2022. We are watchful of strong competition in the mobile space due to DITO’s ramp up.
Recommendation Reviewed: December 08, 2025
Recommendation Changed: May 31, 2022
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Bank of Philippine Islands
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: BPIPM 5 30
- Indicative Yield-to-Maturity (YTM): 4.40%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 13 Nov 2025Bank of the Philippine Islands (BPI) is the 3rd largest bank in the Philippines by assets.
We view the bank as too big to fail given its systemic importance in the country. There is also a strong probability of support from the government in addition to its main shareholder, the Ayala Corporation if needed.
BPI has a long history, and we view it as a fundamentally sound bank with strong and improved profitability, and comfortable liquidity. Capital management however has become less conservative, and while asset quality is relatively well managed, we are keeping an eye on strong growth in the non-wholesale book.
Business Description
AS OF 13 Nov 2025- The history of the Bank of the Philippine Islands traces back to 1851. It is the oldest bank in the Philippines and South East Asia. It was first listed on the Philippine Stock Exchange in 1971, and became a universal bank in 1982.
- Ayala Corporation, one of the biggest conglomerates in the country, became BPI's dominant shareholder in 1969. Ayala Corp still holds a 49% stake in the bank.
- BPI has been acquisitive across the years. It merged with Far East Bank and Trust Company and acquired Ayala Insurance Holdings Corp in 2000. It acquired DBS Bank Philippines in 2001 and Prudential Bank Philippines in 2005. DBS was a shareholder of BPI but exited its position in 2013. More recently in January 2024, it completed the acquisition of the Gokongwei conglomerate's Robinsons Bank.
- The bank is predominantly a corporate bank with 69% of its loan book outstanding to corporates, and the balance to MSME and retail as of 3Q25. Management is keen to skew the loan mix further towards MSME and retail.
Risk & Catalysts
AS OF 13 Nov 2025Direct impact from US tariffs is limited given that the Philippines is not a major goods exporter, but there will be second order effects from a slowdown in regional and global growth.
The recent public infrastructure graft scandal will dampen government spending and private investment over the next couple of quarters, weighing on GDP and corporate loan growth. A prolonged hit to sentiment would exacerbate these effects and put pressure on asset quality.
Further BSP rate cuts are likely to support growth, which will pressure the NIM. BPI, however, remains on track for NIM expansion this year, driven by a pivot toward higher-yielding retail/MSME lending, RRR reductions, and reduced liquidity drag. We see asset quality risks from the strong focus on unsecured retail and MSME growth, but BPI’s wholesale-focused book (69% of total loans) provides comfort and provisioning capacity is strong.
Any rating downgrade of the Philippine sovereign would negatively impact BPI.
Key Metric
AS OF 13 Nov 2025| PHP mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 2.01% | 2.41% | 2.52% | 2.78% | 3.02% |
| Reported ROA (Cumulative) | 1.10% | 1.59% | 1.93% | 1.98% | 2.02% |
| Reported ROE (Cumulative) | 8.4% | 13.1% | 15.4% | 15.1% | 15.0% |
| Net Interest Margin | 3.30% | 3.59% | 4.09% | 4.31% | 4.60% |
| CET1 Ratio | 15.8% | 15.1% | 15.3% | 13.9% | 14.9% |
| Total Equity/Total Assets | 12.1% | 12.2% | 12.4% | 13.0% | 13.7% |
| NPL Ratio | 2.49% | 1.76% | 1.84% | 2.13% | 2.29% |
| Provisions/Loans | 0.91% | 0.58% | 0.22% | 0.32% | 0.68% |
| Liquidity Coverage Ratio | 221% | 195% | 207% | 159% | n/m |
| Net Stable Funding Ratio | 155% | 149% | 154% | 146% | n/m |
Our View
AS OF 19 Nov 2025BPI is the third largest bank in the Philippines with a long history. Its traditionally conservative approach has led to a loss of loan market share in the past, as well as a lower NIM than BDO and MBT. Recent brisk expansion in higher yielding retail and MSME loans has strongly improved profitability levels and driven NIM expansion despite rate cuts. While asset quality has slipped with the loan mix shift, it remains acceptable. However, we are watchful of risks from the strong growth in the non-wholesale book as provision reserves have been pared down to lower levels than peers. Still, we are overall comfortable with BPI given the large wholesale book (69% of loans) and underwriting record, strong provisioning capacity and comfortable liquidity. We have BPI on U/P from an RV standpoint.
Recommendation Reviewed: November 19, 2025
Recommendation Changed: May 21, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 12 Nov 2025UOB has solid stand-alone credit profile and benefits from the high likelihood of support from the government of Singapore, where it is one of the three major local banks.
The bank is more focused on Singapore and Southeast Asia than on Greater China; its traditional strengths are the SME and retail sectors, although its large corporate book is now over 60% of loans.
UOB has been conservatively managed with a sound risk profile, a strong focus on liquidity and a long track record of relatively good performance. However, its 3Q25 results showed some softness with substantial provisions set aside for HK and US CRE.
Business Description
AS OF 12 Nov 2025- UOB was established in 1935 as a Chinese family-owned bank catering to the Hokkien (Fujian) community, Singapore's largest Chinese ethnic sub-group. The Wee family owns about 18% of the shares. A further 5.2% is held by the Lien family which previously controlled Overseas Union Bank, which UOB merged within 2001. The Wee family has significant real estate and hospitality interests in Singapore and regionally.
- UOB's main markets are Singapore and Malaysia where its presence dates back to before Singapore's independence. It expanded through acquisitions in Thailand (Bank Radanasin and Bank of Asia) and Indonesia (Bank Buana), and more recently bought over Citi's consumer franchise in Malaysia, Thailand, Indonesia and Vietnam.
- Franchise strengths are in SME and consumer lending. Building & construction accounts for 27% of loans, followed by housing at 24%, financial institutions at 11% and general commerce at 11% at 2Q25.
- Loans by geography comprise Singapore at 50% of loans, Greater China at 14%, Malaysia at 10%, Thailand at 8%, and Indonesia at 3% at 2Q25.
Risk & Catalysts
AS OF 12 Nov 2025UOB has a greater focus on Southeast Asia than its Singapore bank peers, which leaves it open to more asset quality risk in a downturn / high interest rate environment. It has 8% of its loan book in Thailand, where we are cautious about macroeconomic conditions.
The bank has benefited more from the final Basel III rules implementation than its peers – its CET 1 ratio was previously the lowest among the three but now aligns with peers.
It posted a large profit decline in 3Q25 which was a negative surprise. Although the improved coverage ratios following the preemptive provision recognition are welcome, its NPL coverage ratio remains 40-60 ppt behind peers, and we did not find reassurance from its credit cost outlook. Topline performance also lagged peers.
Key Metric
AS OF 12 Nov 2025| SGD mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 1.23% | 1.31% | 1.52% | 1.51% | 1.44% |
| ROA | 0.92% | 0.99% | 1.19% | 1.19% | 0.81% |
| ROE | 10.2% | 11.9% | 14.2% | 13.7% | 9.0% |
| Equity to Assets | 9.3% | 8.6% | 8.8% | 9.2% | 8.9% |
| CET1 Ratio (fully-loaded) | 13.5% | 13.3% | 13.4% | 15.4% | 14.5% |
| NPL Ratio | 1.62% | 1.58% | 1.52% | 1.53% | 1.60% |
| Provisions / Loans | 0.20% | 0.20% | 0.25% | 0.27% | 0.68% |
| Liquidity Coverage Ratio | 133% | 147% | 158% | 143% | 142% |
| Net Stable Funding Ratio | 116% | 116% | 120% | 116% | 116% |
CreditSight View Comment
AS OF 14 Jan 2026UOB is conservatively run with a large family ownership and a sound balance sheet. The bank is more focused on SG and Southeast Asia than on Greater China. Outside SG, its main operations in ASEAN are in Thailand, Malaysia and Indonesia which collectively make up ~20% of its loan book. It acquired Citi’s consumer operations in Thailand, Malaysia, Indonesia and Vietnam, which has been good for the franchise. The bank has benefitted more from the final Basel III rules implementation than its peers but it has lost this advantage again since 3Q25. The substantial preemptive provisions taken in 3Q25 to strengthen coverage ratios heavily hit the bank’s 3Q25 results, but UOB’s NPL coverage ratio remained 40-60 ppt behind the two peers. New NPAs have risen due to its CRE exposure in HK and the US.
Recommendation Reviewed: January 14, 2026
Recommendation Changed: July 04, 2017
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 12 Nov 2025Historically, KDP has benefited from exposure to faster growing, higher margin beverage & coffee categories. However, the credit story is current dominated by the pending acquisition of JDE Peet’s, and plans to separate the coffee and beverage businesses.
Pro forma for the initial merger, KDP will have net leverage of 4.6x (vs 3.3x at MRQ), with plans to delever thereafter. Management expects both standalone entities to maintain investment grade ratings, but leverage will likely be elevated out of the gate.
KDP has a successful track record of deleveraging after past M&A. We like the growth outlooks of the proposed standalone entities, and think the new issue to fund the acquisition will likely present a good opportunity to add exposure to the name.
Business Description
AS OF 12 Nov 2025- KDP is the result of a July 2018 merger between Dr Pepper Snapple and Keurig Green Mountain. The merger combined a traditional soft drinks company (DPS) with a faster growing coffee platform that includes the market's leading single serve brewing system.
- The merger was backed by JAB Holdings via its affiliate, Maple Holdings BV. While JAB has trimmed its stake in recent periods, it still controls ~16% of the shares.
- KDP recorded $15.4 bn in 2024 net sales with adjusted EBITDA of $4.5 bn. The business is heavily concentrated in North America, and results are reported across three operating segments: U.S. Refreshment Beverages (61% of 2024 sales), U.S. Coffee (26% of sales), and International (13.0% of sales).
- Examples of KDP's key brands include Dr Pepper, Keurig, Snapple, Canada Dry, 7Up, Mott's, and A&W. The company also partners with other leading coffee brands from various producers via licensing and manufacturing agreements for K-cups.
- KDP signed a definitive agreement to acquire JDE Peet's for $22+ bn in August. The deal is expected to close in 1H26. Subsequently the company intends to separate the business into two standalone entities: Global Coffee Co and Beverage Co.
Risk & Catalysts
AS OF 12 Nov 2025The KDP-JDEP acquisition ($22 bn) is anticipated to close in 1H26, with the goal of being separation ready by year-end 2026. Management reiterated its $400 mn synergy target over three years.
The coffee industry is currently experiencing intense cost inflation, and price elasticity has increased, challenging cost passthrough.
Post-split, BeverageCo will target 3.5-4.0x net leverage and Global CoffeeCo will target 3.75-4.25x net leverage. There is still uncertainty where legacy bonds will end up, but we tend to see BeverageCo ending up as RemainCo. It is also unclear what pf net leverage will be at the standalone entities. If BeverageCo is RemainCo, we expect some level of debt repayment following a spin/sale of Global CoffeeCo.
Key Metric
AS OF 12 Nov 2025| $ mn | Y21 | Y22 | Y23 | Y24 | LTM 3Q25 |
|---|---|---|---|---|---|
| Revenue | 12,683 | 14,057 | 14,814 | 15,351 | 16,174 |
| EBITDA | 3,908 | 3,932 | 4,189 | 4,528 | 4,678 |
| EBITDA Margin | 30.8% | 28.0% | 28.3% | 29.5% | 28.9% |
| EBITDA-CAPEX-INT % of Revenues | 23.5% | 20.5% | 21.7% | 21.6% | 21.7% |
| Total Debt | 12,024 | 12,104 | 13,308 | 15,595 | 15,846 |
| Net Debt | 11,457 | 11,569 | 13,041 | 15,085 | 15,330 |
| Net Leverage | 2.9x | 2.9x | 3.1x | 3.3x | 3.3x |
| EV / EBITDA | 16.3x | 15.8x | 14.2x | 13.0x | 10.7x |
CreditSight View Comment
AS OF 09 Jan 2026KDP signed a definitive agreement to acquire JDE Peet’s for $22+ bn in August. The deal is expected to close in 1H26. Subsequently the company intends to separate the business into two standalone entities: Global Coffee Co and Beverage Co. Initially, the company contemplated out of the gate pf net leverage, but after pushback from investors, the company is swapping debt financing for PE investments that will reduce pf net leverage to 4.6x. The separation is expected to be ready by year-end 2026. Management will target 3.5-4.0x net leverage at Beverage Co and 3.75-4.25x leverage at Global Coffee Co. We see the new issuance for the merger as a good opportunity to add exposure to the credit.
Recommendation Reviewed: January 09, 2026
Recommendation Changed: October 28, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 12 Nov 2025DBS Group has sound standalone fundamentals and benefits from its strong home country. Support may be stronger than peers thanks to its longstanding relationship with the government and Temasek’s ~29% stake.
DBS is a major player in Asian corporate banking, and also has strengths in mass market and private banking. It is also one of Asia’s leading digital banks. Acquisitions have been skillfully handled in the past decade or so.
DBS has performed well in recent years, with a high RoE, and its asset quality has been more resilient than that at UOB and OCBC thanks to its greater exposures to large corps.
Business Description
AS OF 12 Nov 2025- DBS was established in 1968 as a development bank but was subsequently privatised and is now commercially run. The Singapore government retains an indirect stake through its investment vehicle, Temasek (~29%).
- In 1998, DBS moved beyond its wholesale bank origins with the acquisition of POSB that brought along a large mass market customer and deposit base. In 2001, it acquired the former Dao Heng Bank in Hong Kong and in 2008, it acquired a part of the failed Bowa Bank in Taiwan, to supplement its Greater China operations. It also regularly acquired wealth management businesses, such as SocGen's Asian private banking business in 2014 and ANZ's Asian retail and wealth management businesses in Singapore, Hong Kong, China, Taiwan and Indonesia in 2018. Recent acquisitions include Lakshmi Vilas Bank in India, a 16.69% stake in China's Shenzhen Rural Commercial Bank, and Citi's consumer business in Taiwan. However, expansion in Malaysia has been more challenging, with its most recent plan to acquire Temasek's 29.1% stake in Alliance Bank Malaysia Bhd held up by regulatory review.
- As of 1H25, Singapore accounted for 45% of its loan book, with HK (13%), Rest of Greater China (13%), South & Southeast Asia (9%) and Rest of the World (20%) accounting for the rest.
- The bank is well regarded as a digital leader in the banking space, and has steadily built capabilities in private banking and markets businesses.
Risk & Catalysts
AS OF 12 Nov 2025Loan growth has been a recent challenge, with ongoing high repayments in Greater China and potential impact from tariffs.
Asset quality has outperformed the other two Singapore majors with very low credit costs.
The bank encountered some operational issues recently. On 30 April 2024, the MAS removed its restriction on DBS’s non-essential activities, which had been imposed in Nov-23 following IT failures. Its retail payments system had another outage on 2 May 2024.
Like other Singapore banks, DBS is facing NIM pressure as SORA keeps falling due to excess liquidity.
Key Metric
AS OF 12 Nov 2025| SGD mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 1.14% | 1.32% | 1.60% | 1.69% | 1.67% |
| ROA | 1.0% | 1.1% | 1.4% | 1.5% | 1.4% |
| ROE | 12.5% | 15.0% | 18.0% | 18.0% | 17.0% |
| Equity/Assets | 8.38% | 7.65% | 8.40% | 8.32% | 7.81% |
| CET1 Ratio (fully loaded) | 14.4% | 14.6% | 14.6% | 15.1% | 15.1% |
| NPL Ratio | 1.3% | 1.1% | 1.1% | 1.1% | 1.0% |
| Provisions / Loans | 0.01% | 0.06% | 0.14% | 0.14% | 0.18% |
| Liquidity Coverage Ratio | 135% | 146% | 144% | 147% | 149% |
| Net Stable Funding Ratio | 123% | 117% | 118% | 115% | 114% |
CreditSight View Comment
AS OF 07 Nov 2025DBS performed well for several years under CEO Piyush Gupta, who was succeeded by Ms. Tan Su Shan in March 2025. It has comfortable capital and well managed liquidity. Temasek is the main shareholder. DBS has grown its various businesses sensibly and has been a leading bank for adopting digital technology, recent technology outages notwithstanding. It has also steadily grown its fee income and its regional businesses. WM and transaction banking have been focuses, with bolt-on acquisitions/stakes in private banking and Asian retail banking, more recently in India (Lakshmi Vilas Bank), China (SZRCB) and Taiwan (Citi consumer business). It delivered record high FY4 profits and 9M25 results were peer-leading. Credit costs are very low.
Recommendation Reviewed: November 07, 2025
Recommendation Changed: June 03, 2016
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor