July 26, 2006 (LBO) – Fitch Ratings Lanka Wednesday has upgraded the Lease Backed Trust Certificates issued by People’s Leasing Trust Nine to ‘A+(lka)’ from ‘A(lka)’. People’s Leasing trust nine, is a special purpose vehicle created by People’s Leasing Company of Sri Lanka (PLC) for the sole purpose of this transaction.
The rating action says Fitch, reflects the quality of assets pledged, the substantial amount of excess collateral pledged against the notes issued and the higher credit rating of PLCs parent company People’s Bank.
Over-collateralisation or excess collateral has averaged 63.0 percent and is at a high of 88.0 percent at present.
This compares well with the minimum over-collateralisation requirement of 20 percent of the transaction.