Fitch Ratings Lanka this week assigned an 'A-(lka)' National Long-term rating to People's Leasing Company Limited's (PLC) proposed senior unsecured redeemable debentures of up to Rs 630 million.
Also, the agency has affirmed PLC's National long-term rating at 'A-(lka)' with a stable outlook.
The debt issue will be privately placed. The proceeds will be utilised to fund the growth of PLC's lease, hire purchase, and sundry loan portfolio, Fitch said in a statement.
The agency said that interest payments borne by PLC on the debt issue is fixed throughout its tenure - for the most part by way of an interest rate cap – which limits the company's exposure to rising interest rates up to the issued amount.
PLC is one of Sri Lanka's largest specialised leasing companies, with assets amounting to over Rs 30 billion as at 31 December 2009. The company is wholly-owned by People's Bank, the country's second-largest state bank in terms of assets. |
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