PCI Leasing’s P100 Million STCPs Rated PRS 1

Philippine Rating Services Corporation (PhilRatings) announced that PCI Leasing and Finance Inc.’s (PCI Leasing) P100 million in short-term commercial papers (STCPs) have been assigned a rating of PRS 1. A rating of PRS 1 is defined as: “Strongest capability for timely payment of debt instrument issue on both interest and principal.”

In arriving at the rating, PhilRatings considered PCI Leasing’s strong liquidity position relative to the size of the issue applied for; its revenue and profit-generating capabilities compared to other players in the industry; its sizeable capital base and conservative debt position; and its access to a significant amount of credit facilities, largely resulting from having a very supportive shareholder in Equitable PCI Bank.

In the year 2002, revenues of PCI Leasing amounted to P576 million while net income was at P307 million, growing by 53% from the previous year’s P201 million. While concerns on asset quality and market prospects in the sector continue to persist, it is quite unlikely that any major deterioration in credit quality will affect PCI Leasing’s strong capability to settle an amount of P100 million within a year.

This entry was posted in Issue and Issuer Credit Ratings and tagged , . Bookmark the permalink. Both comments and trackbacks are currently closed.