Monday 20 July 2015

Fitch rates People’s Leasing’s senior debt AA-(lka)

Fitch Ratings has assigned People’s Leasing & Finance proposed senior unsecured debentures of up to Rs 6 billion an expected national long term rating of ‘AA-(lka)(EXP)’.

The final rating is contingent on the receipt of the final documents conforming to information already received, Fitch Ratings said. The issue is expected to have tenors of four and five years with fixed-rate coupon payments. PLC expects to use the proceeds for working capital purposes, to diversify its funding mix, and to reduce maturity mismatches.

The proposed debenture is rated in line with PLC’s National Long-Term Rating of ‘AA-(lka)’, given that the issue is expected to rank equally with the claims of company’s other senior unsecured creditors.

PLC’s IDRs and National Long-Term Rating reflects Fitch’s view that PLC’s parent, the state-owned and systemically important People’s Bank (AA+(lka)/Stable), has a high propensity but limited ability to provide extraordinary support to PLC if required.
www.dailynews.lk

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