Fitch Ratings Lanka has assigned People’s Leasing & Finance PLC’s (PLC, AA-(lka)/Stable) senior debentures of up to Rs.8 billion 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.
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 percent shareholding in PLC, common brand and PLC’s position as the bank’s ‘strategic subsidiary’.