“PCI Leasing and Finance, Inc.’s (PCI Leasing) P250 million short-term commercial papers (STCPs) are rated PRS 1 minus,†PhilRatings announced. The new rating is an improvement over last year’s rating of PRS 2 plus for a previous P500 million STCP line.
A rating of PRS 1 (Best Grade) is defined as: “Strongest capability for timely payment of debt instrument issue on both interest and principal.†Repayment capacity will normally be evidenced by: leading market position, conservative capitalization structures, broad margins in earnings coverage of fixed financial charges, and assured sources of alternate liquidity. Short-term rating symbols can be further qualified by a plus or a minus sign. PRS 1 is the highest rating possible.
In arriving at PCI Leasing’s improved STCP rating, PhilRatings considered the significant hike in operating revenues and net income in 2001 and in the year 2002 to date, brought about by higher business volumes and tight control over major expense items. Expected receivables collection more than adequately cover payables, both in the short and long-term. Stronger support is likewise seen from parent company, Equitable PCI Bank, with Mr. Rene J. Buenaventura, PCI Leasing president and CEO, concurrently occupying the same positions in the bank and with Equitable PCI-Bank having successfully settled its P30 billion emergency loan with the Bangko Sentral ng Pilipinas late last year.
PCI Leasing’s capital base of P2.9 billion as of the first half of 2002 is the largest among domestic finance companies. This puts the company in a relatively better position, compared to other players, in terms of withstanding prolonged market weakness and addressing asset quality concerns.