Fitch affirms People's Leasing

Fitch Ratings said it affirmed People's Leasing Co. Ltd.'s national long-term rating at A-(lka), national long-term rating on proposed subordinated debenture issue at BBB+(lka) and national short-term rating on LKR 75 million outstanding short-term debentures at F1(lka) consequent to news of its possible takeover of Seylan Merchant Leasing PCL.

The outlook remains stable.

Fitch also said it placed Seylan Merchant Leasing's BB+(lka) national long-term rating on Rating Watch positive. Seylan Merchant's rating could potentially be upgraded or affirmed if People's Leasing were to acquire a controlling stake from its majority shareholder, Seylan Merchant Bank PCL.

People Leasing's ratings are underpinned by the agency's expectations that its credit profile is unlikely to be materially affected due to this acquisition, Fitch said.

Fitch said it believes the company's strong financial profile should allow it to comfortably absorb Seylan Merchant.

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