BDO Leasing gets high credit rating

Philippine Rating Services Corp. (PhilRatings) said it has assigned a PRS 2 Plus rating to the proposed P4-billion short-term commercial papers to be issued by BDO Leasing & Finance, Inc. (BDOLF).

The rating means that BDOLF has an above-average (strong) capability for payment of the commercial paper issue on both interest and principal.

A PRS 2 Plus rating is the second highest rating level on the PhilRatings short-term credit rating scale, with a PRS 2 Plus-rated issue normally featuring many characteristics of a PRS 1 rating but to a lesser degree.

Earnings trends and coverage ratios, while sound, will be more subject to variations. Capitalization characteristics, although still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained.

The PRS 2 Plus rating reflects BDOLF’s solid market position, sound capitalization, synergies with its parent company (Banco de Oro Unibank, Inc. or BDO) and sustained although tempered profitability.

The company continues to be a major player in the domestic leasing and financing industry. Its capitalization is sound, supported by the company’s large equity base and conservative leverage.

Its P4-billion equity as of end-2007 is considered as the biggest in the industry. Debt usage is expected to remain prudent, with projected debt-to-equity ratio seen to be nearly unchanged from that of the previous years.

Projected to remain a vital and profitable subsidiary of its parent-bank, BDOLF is expected to continue to draw name recognition and marketing referrals through BDO’s extensive branch network.