Fitch rates People’s Leasing issue AA-(lka)

Fitch Ratings said it assigned a national long-term rating of AA-(lka) to People’s Leasing & Finance plc’s proposed senior unsecured debentures of up to 6 billion in Sri Lankan rupee.

The issue is expected to have tenors of four- and five-years with fixed-rate coupon payments, Fitch said.

The company expects to use the proceeds for working capital purposes, diversify its funding mix and reduce maturity mismatches, the agency said.

The proposed debenture is rated in line with People’s national long-term rating of AA-(lka) given that the issue is expected to rank equally with the claims of company’s other senior unsecured creditors, Fitch said.

The ratings reflect a view that its parent, state-owned and systemically important People’s Bank, has a high propensity, but limited ability to provide extraordinary support to People’s Leasing if required, the agency said.

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