PCI Leasing to issue P500-M worth of STCPs

PCI Leasing and Finance Inc. is seeking the approval of the Securities and Exchange Commission (SEC) to issue P500 million in short-term commercial papers (STCP) to pay off maturing obligations and refinance relending activities.

PCI Leasing’s proposed P500- million STCP issuance was assigned a PRS 1 rating, which means having "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 P100 million STCP line in 2003-2004 and which was also assigned a rating of PRS 1.

PCI Leasing said 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.

In assigning the rating, local credit ratings agency Philippine Rating Services Corp. (Philrating) took into account PCI Leasing’s leading market position, its strong capital base, its steady earnings performance even in difficult market and economic conditions, its more-than-adequate matching of payables and receivables as well as its strong financial flexibility.

Philratings noted that PCI Leasing has been innovative in terms of improving existing systems and in coming up with new services and tapping new markets.

Last year, PCI Leasing reported a net income of P258 million on revenues of P780 million. Debt-to-equity ratio is quite conservative at 0.56 as of the same period.

Philratings said PCI Leasing has been able to manage its asset quality concerns in recent years and significant progress has been achieved in the handling of its ROPOAs. In the short-term, PCI Leasing is expected to generate significant lease income from one of its properties.

PCI Leasing is a majority-owned subsidiary of Equitable-PCIBank.