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Fitch Assigns 'A-(lka)' to PLC's Proposed Senior Debt
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Colombo News Desk CND on 26 May, 2010 09:37:00
 
The proceeds from the issue will be utilised to fund the growth of PLC's lease,
hire purchase, and loan portfolio. The issue features semi-annual coupon
interest payments, a four-year tenure, and capital redemption at maturity.
Furthermore, the coupon interest payments on the debt issue are limited by way
of an interest rate cap and floor, which limits the company's exposure to
potential interest rate volatility, up to the issued amount.
PLC is one of Sri Lanka's largest specialised leasing companies, with assets
amounting to over LKR32bn at 31 March 2010. PLC is wholly owned by People's Bank
(rated 'A(lka)'/Stable).
For a detailed credit profile of PLC, please refer to Fitch's Credit Update
report dated 15 March 2010 at Fitch's website, www.fitchratings.com.
People's Bank owns a 1.78% share in Fitch Ratings Lanka Limited. No other
shareholder, other than Fitch Ratings Limited of the UK, is involved in the
day-to-day operations of, or credit rating reviews undertaken by, Fitch Ratings
Lanka Limited.
Applicable Criteria available on Fitch's website, at www.fitchratings.com:
"Global Financial Institutions Rating Criteria", and "Finance and Leasing
Company Criteria", both dated December 29, 2009.