“The rating for PCI Leasing and Finance, Inc.’s (PCI Leasing) proposed P500 million in short-term commercial papers (STCPs) is PRS 1,” PhilRatings announced. A rating of PRS 1 is defined as: “Strongest capability for timely payment of debt instrument issue on both interest and principal.” The amount being applied for represents a significant increase from the company’s previous P100 million STCP line in 2003-2004 and which was also assigned a rating of PRS 1.
In assigning the rating, PhilRatings considered PCI Leasing’s leading market position, its strong capital base, its steady earnings performance even in difficult market and economic conditions, its more-than-adequate matching of payables and receivables, as well as its strong financial flexibility. PCI Leasing is a majority-owned subsidiary of Equitable PCI Bank, the third largest commercial bank in the Philippines. The amount of its STCP line is being increased in the light of an expansion in the volume of bookings and an increase in the company’s portfolio. Management has shown proven marketing skills and prudence in the use of borrowings. The company has been innovative in terms of improving existing systems and in coming up with new services and tapping new markets.
In 2003, total revenues amounted to P780 million, with net income at P258 million. Debt-to-equity ratio is quite conservative at 0.56 as of year-end 2003. PCI Leasing has been able to manage its asset quality concerns in recent years and significant progress has been achieved in the handling of its ROPOAs. In the short-term, for example, PCI Leasing will be able to generate significant lease income from one of its properties.