“The rating for PCI Leasing and Finance, Inc.’s (PCI Leasing) proposed P1.0 billion 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 P500 million STCP line in 2004 and which was also assigned a rating of PRS 1.
In assigning the rating, PhilRatings considered PCI Leasing’s sound liquidity position, the more than adequate options available to it to generate cash to meet short-term obligations, as well as its strong capital base. The notable growth in its portfolio assures stability in future revenue and profit streams, even as the company has also adequately managed its asset quality concerns. 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 early 2005, PCI Leasing set up its subsidiary Equitable Pentad Rental, Inc. (EPRI) to cater to operating lease-oriented clients.
In 2004, total revenues were at P865 million, up by 11% from that of the previous year. Net income was at P354 million, representing a 37% hike from that of 2003. Debt-to-equity ratio remains quite conservative at 0.68 as of year-end 2004 even as the company has relied more heavily on borrowings to support its portfolio growth. Interim performance for the first half of 2005 points to continued hikes in revenues and earnings for whole year 2005.