PCI Leasing to issue P1.25-B short-term commercial papers

PCI Leasing & Finance Inc., a subsidiary of EPCIBank, plans to issue P1.25 billion in short-term commercial papers.

The issue was assigned a rating of PRS 1 by Philratings.

In assigning the rating, PhilRatings considered the consistent growth in revenues and earnings complemented by a build-up in capital and assets that have placed PCI Leasing in a position of dominance in the leasing and finance industry.

Philratings said the growth in PCI Leasing’s loans portfolio is the basis for the strong industry standing supported by efficiency in the fast processing of new business, a responsive marketing organization and a well-executed marketing complementation and strategic synergy with parent company, Equitable PCI Bank (EPCIB).

Philratings also considered the diversified nature of PCI Leasing’s receivables portfolio; the more than adequate amount of collections to cover maturing payables; the decline in value of the repossessed assets and non-performing assets; and the adequate loan loss reserves, all of which favorably characterize the quality of PCI Leasing’s assets.

"The company’s access to credit lines with various financial institutions also provides PCI Leasing flexibility in sourcing funds," Philratings said.

Last year, PCI Leasing posted a net income of P394 million or an increase of seven percent on revenues of P1.1 billion. Finance and leasing portfolio reached P8.4 billion, up from P7.6 billion in 2004.