BDO gets above average rating

MANILA, Philippines - BDO Leasing and Finance Inc., a subsidiary of BDO Unibank Inc., obtained an above average rating from the Philippine Ratings Services Corp. for its  P15 billion short-term commercial paper issuance.

In a statement, PhilRatings said it assigned an issue credit rating of PRS 2 to BDO Leasing’s STCP flotation.  The rating is just a notch below the top grade of PRS 1.

The additional P10 billion in STCPs that the company applied for in the third quarter were similarly rated PRS 2.

A rating of PRS 2 is defined as “above average (strong) capability for payment of the issue on both interest and principal.”

In assigning the rating, PhilRatings said it took into account BDO Leasing’s favorable market position in a competitive environment;  business synergy with its parent firm; BDO Leasing’s solid business performance and ability to meet targets; and its improving asset quality measures and well diversified asset portfolio. 

“The rating also considers the likelihood that the Philippine economy will remain vibrant, thus providing opportunities for the leasing and financing industry,” PhilRatings said.

BDO Leasing has established itself as a key player in the Philippine financing industry. Relative to its peers, BDO Leasing had the largest asset-base and loan portfolio as of the end of December last year.

The company reported a 22 percent jump in net earnings in the nine months through September this year.

Its total assets stood at P28.3 billion as of the end of September this year, up 11.9 percent from end-2013.