Mar 23, 2012 (LBO) – Fitch Ratings Lanka has given People’s Leasing Company’s proposed commercial paper issue of up to a billion rupees an ‘F1(lka)’ National Short-term rating. PLC itself is rated ‘A+(lka)’ with a stable outlook, a statement said.
“The proposed issuance will be utilised to finance PLC’s working capital / lending.”
Of the proposed billion rupees, 750 million rupees is expected to have tenure of one year, while a further 100 million and 150 million rupees will have tenures of three- and six months, Fitch said.
“PLC’s ratings reflect Fitch’s view that its parent, People’s Bank (PB, ‘AA(lka)’/Stable) is likely to extend support in a stressed scenario, if required,” it said.
“This view is underpinned by PB’s majority ownership of PLC, common board representation, PLC group’s significant profit contribution to PB’s consolidated profile, and the strong strategic and operational linkages between the companies.”
An ‘F1(lka)’ category short-term rating indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country, Fitch said.
“Under the agency’s National Rating sca