PCILF, a publicly-listed finance company was cleared by the SEC for complying with all the requirements for issuance of commercial papers.
Tapped as lead selling agent for the issue was PCI Capital Corp.
The SEC approval was anchored on the favorable credit rating given by Philippine Rating Services Corp. on PCILF’s capability to pay both principal and interest. According to Philratings, PCILF has very strong capability to pay off its debts.
In assigning the rating, Philratings took into consideration PCILF’s improved operating results and margins, very strong liquidity position, large absolute size of capital and conservative leverage position, containment in level of its problem assets, and support from Equitable PCI Bank, the third largest bank in the country.
PCILF is one of the top three earnings contributors in the Equitable PCI Bank Group. During the first six months of the year, profits of the company grew to over P420 million boosted by higher operating revenues coupled with the significant hike in operating income and lower tax provision.
Philratings said PCILF’s expected receivables collections both in the short and long-term more than adequately cover its payables, including the proposed STCPs.
As of end-June 2002, PCILF’s capital base stood at P2.9 billion making it the largest among the country’s domestic finance companies. Its debt-to-equity ratio during the same period is very conservative at 0.30:1, putting PCILF in a better position to endure prolonged market weakness and asset quality difficulties relative to other local finance companies.
PCILF has maintained a conservative operating strategy – characterized by tighter credit monitoring, conservative loss provisioning, and a consolidation of its branch operations – to uphold the company’s financial position amidst the difficult business environment.
The leasing and finance industry, although still reeling from the adverse effects of the Asian financial crisis, is slowly showing signs of improvement from the previous year. The past year saw the increase in the number of new finance companies or branches that were set up and of previously inactive companies that have resumed operations.
PCILF offers a wide range of leasing and financing services which include direct lease, sale and leaseback, amortized commercial and consumer loans, installment paper purchase and personal loans program.
PCILF maintained its lead in terms of market reach with a distribution network of seven branches nationwide (Cagayan de Oro, Cebu, Dagupan, Davao, Iloilo, Imus and San Pablo).