Fitch rates PLC ‘A(lka)’
Fitch Ratings Lanka has assigned People’s Leasing Company Limited’s
(PLC) proposed senior debentures of up to Rs 750 million a National
Long-Term rating of ‘A(lka)’.
The issue is rated at the same level as PLC’s National Long-Term
rating of ‘A(lka)’ which has a stable outlook. This is in compliance
with Fitch’s rating criteria on senior unsecured bond instruments of
financial institutions.
The proposed instrument will rank pari passu with PLC’s senior
creditors. The debentures carry maturity options of between three and
four years, and will be issued at a fixed interest rate, helping PLC to
reduce interest rate mismatches between its assets and liabilities.
The ratings reflect PLC’s strong financial profile, which is in turn
driven by its entrenched market share as Sri Lanka’s largest specialised
leasing company (SLC), and its effective risk management systems and
controls.
The rating also derives comfort from People’s Bank’s 100 percent
ownership (PB, ‘AA-(lka)’/Positive) of PLC.
The latter carries out the entirety of PB’s incremental leasing
business, and contributed to over 20 percent of PB’s consolidated
post-tax profits at end-2010.
PLC’s total assets stood at Rs. 49 billion as at end-2010, which
amounted to a share of 13 percent of aggregate SLC and registered
finance company sector assets. |