Fitch rates People’s Leasing’s Senior Debt Final ‘AA-(lka)’

Thursday, 27 October 2016 00:00 - - {{hitsCtrl.values.hits}}

Fitch Ratings Lanka has assigned People’s Leasing & Finance PLC’s (PLC, AA-(lka)/Stable) senior debentures of up to Rs. 8 b a final National Long-Term Rating of ‘AA-(lka)’.

The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is the same as the assigned expected rating on 7 September 2016.

The debentures, which have tenors of three, four and five years and carry fixed-coupons, will be listed on the Colombo Stock Exchange. PLC will use the proceeds to fund loan book growth and reduce maturity mismatches.

Key rating drivers

The debentures are rated in line with PLC’s National Long-Term Rating as they rank equally with claims of the company’s other senior unsecured creditors.

PLC’s Issuer Default Rating and National Long-Term Rating reflect Fitch’s view that PLC’s parent, the state-owned and systemically important People’s Bank (Sri Lanka) (AA+(lka)/Stable) would provide PLC with extraordinary support, if required.

People’s Bank’s propensity to support PLC stems from its 75%-shareholding in PLC, common brand and PLC’s position as the bank’s “strategic subsidiary”.

Rating sensitivities

The ratings on the debentures will move in tandem with PLC’s National Long-Term Rating.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.