BDO Leasing gets PRS 2 rating

MANILA, Philippines - BDO Leasing & Finance Inc., one of the major financing companies in the country, obtained a PRS 2 rating from local debt watcher Philippine Rating Services Corp. for its P15 billion short-term debt.

A short-term issue rating of PRS 2 is defined as as having above average (strong) capability to pay commercial paper issue  on both interest and principal.

PhilRatings said it based the rating on available information and projections at the time that the review was ongoing.

In issuing the rating, PhilRatings took into account BDO Leasing’s solid market position and business synergy with its parent firm  BDO Unibank, its expanding loan portfolio and improved profitability, stable asset quality and composition, as well as adequate financial flexibility and sufficient capitalization.

In the first nine months of the year, BDO Leasing posted a net income of P310 million, four percent higher than the P297 million recorded the same period a year ago.

Gross revenues rose nine percent to  P1.4 billion while total operating expenses increased by nine percent.

PhilRatings, however, also sees the need for BDO Leasing to sustain profitability moving forward to reflect a longer track record in terms of improved operating results.

BDO Leasing is a significant player in the Philippine financing industry. It continues to benefit from synergies, name recognition and marketing referrals provided by the BDO Group.

The BDO Group has an extensive distribution network comprising more than 780 operating branches and over 2,000 ATMs nationwide. As of end-June, BDO was also the country’s largest bank in terms of resources, deposits and assets under management.