Fitch assigns ‘AA-(lka)’ to People’s Leasing’s Rs.8bn debenture

8 September 2016 12:02 am - 0     - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings yesterday assigned People’s Leasing & Finance PLC’s (PLC, AA-(lka)/Stable) proposed senior debenture issue of up to Rs.8 billion an expected national long-term rating of ‘AA-(lka)(EXP)’.


The debentures, which will have tenures of three, four and five years and carry fixed coupons, will be listed on the Colombo Stock Exchange.  PLC expects to use the proceeds for working capital purposes and to reduce maturity mismatches. Fitch assigns...


The final rating is subject to the receipt of final documentation conforming to information already received. The proposed debenture is rated in line with PLC’s national long-term rating of ‘AA-(lka)’, as the issue is expected to 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 extraordinary support to PLC, if required. 


People’s Bank’s propensity to support PLC stems from its 75 percent-shareholding in PLC, common brand and PLC’s position as the bank’s “strategic subsidiary”.
PLC accounted for 29.6 percent of People’s Bank’s consolidated post-tax profits and 9.9 percent of total assets at end-March 2016. 


PLC has 110 window offices within People’s Bank branches in addition to its own branches. 
The parent’s ability to provide support to PLC is, however, limited, as reflected in Sri Lanka’s rating of B+. The national long-term rating of People’s Bank reflects Fitch’s expectation of extraordinary support from the sovereign.

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




ANYTHING FOR MONEY

Some unregulated online lenders are remotely taking control of phones of thos

Frontline cops charge negligence by high-ups worsened police cluster

The police have done an invaluable service in the frontlines to combat the CO

US Vice President-Elect Kamala Harris’s Key Sri Lankan Tamil Aide

An overwhelming feeling of relief has descended upon the world-not merely th

The virus may be spreading much faster than official data suggest

The daily case reports from the Epidemiology Unit are the only data we have t

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.