Peoples' Leasing Company (PLC) is also rated 'A-(lka)' with a 'stable' outlook. The securities were issued by Peoples' Leasing Company Trust Thirty Two (PLC32) backed by a pool of leases originated by PLC.
Fitch said the rating was confirmed as payouts were regular in the review period of March to November 2007, and the credit enhancement available from over-collateralization (leases in excess of the value of the LBTCs) and debt service cover.
Delinquent and pre-paying leases are also required to be replaced and the Trust also has full recourse to the originator if cashflows from the leases are not enough to meet investor payments.
Pre-terminations of leases averaged 0.45 percent of the months opening pool principal, while a total of 3.5 percent of the initial pool principal was pre-terminated during the review period.
The originator is required to replace lease contracts that have been pre-terminated or those which are overdue for over two months, with performing assets that gen