MANILA, Philippines - BDO Leasing and Finance Inc.’s proposed issuance of P10 billion worth of short-term commercial papers (STCPs) was assigned a PRS 2 rating by local credit issuer Philippine Rating Services Corp.
A short-term issue rating of PRS 2 is defined as “above average (strong) capability for payment of the issue on both interest and principal.”
BDO Leasing, a unit of top lender BDO Unibank Inc., already has an existing license to issue up to P15 billion in STCPs which are also rated PRS 2.
The rating considered BDO Leasing’s favorable market position in a competitive environment; solid business performance and ability to meet targets, improving asset quality measures and well diversified portfolio; as well as synergies with its parent company BDO.
In issuing the rating, PhilRatings also took into account the likelihood that the Philippine economy will remain vibrant, thus providing opportunities for the leasing and financing industry.
BDO Leasing has established itself as a key player in the Philippine financing industry. Relative to its peers, the company had the largest asset-base and loan portfolio as end 2013.
Consolidated net income rose 2.3 percent to P420.3 million last year as revenues reached an all time high of P1.9 billion on higher operating lease income from BDO Rental Inc.
The company’s loans and receivables portfolio posted double-digit growth of 21.6 percent as it benefited from greater demand for leasing and financing services on the back of a robust domestic economy and lower average lending rate.