Fitch assigns 'BBB+(lka)' to People's Leasing

Fitch Ratings Lanka has assigned a 'BBB+(lka)' National Long-term rating to Sri Lanka-based People's Leasing Company Limited's (PLC) proposed subordinated, unsecured, redeemable (five-year), listed debenture issue of up to Rs. 1 billion. At the same time, the agency has affirmed PLC's National Long-term rating of 'A-(lka)' (A minus (lka).

The outlook is stable.

The issue rating takes into account that the proposed debenture will rank as subordinated to PLC's existing senior debt. PLC's rating reflects its good financial profile, and People's Bank's (Sri Lanka) (PB, 'A-(lka)' (A minus(lka)/ Outlook Positive) 100%-ownership of its equity.

PLC benefits from PB's strong brand franchise, and operational and funding support. PLC's rating is constrained by the market risk and limited funding diversity inherent in the specialised leasing company (SLC) sector.