Metrobank leasing unit secures top credit rating

MANILA, Philippines — Orix Metro Leasing and Finance Corp., the leasing and finance arm of the Metrobank Group, plans to issue bonds amounting to as much as P10 billion.

The proposed issue has been assigned an issuer rating of PRS Aa plus (corp.) by Philippine Rating Services Corp. It was also given a Stable Outlook.

An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year.  The focus is on financial strength and stability under normal and stressed conditions to be able to meet existing and prospective financial obligations.

A company rated PRS Aa (corp.) differs from the highest-rated corporates only to a small degree. It has a strong capacity to meet its financial commitment relative to that of other Philippine corporates.

A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.  

The assigned issuer rating for Orix Metro takes into consideration the company’s status as a leading market player,  its strong shareholders and highly-experienced management team and expectations of tempered profitability for the company.  

PhilRatings also took into account the sustained overall growth of the leasing and financing industry, despite the slowdown in the domestic economy’s expansion.  

Orix Metro is one of the country’s leading and financing companies, and with services that include finance lease, mortgage loans, receivables discounting and operating lease.  

Its nationwide network of 112 branches is the largest compared to its peers, while it has 8,046 lease units comprised of cars, pick-ups, vans, and light trucks.

 Compared to other big leasing and finance companies which are similarly part of large financial conglomerates (BDO Leasing and Finance,  BPI Century Tokyo Lease and Finance Corp. and RCBC Leasing and Finance Corp., Orix Metro led in terms of net income, equity base, and asset size as of the end of 2018.  

Metrobank and Orix Corp. own 40 percent each of Orix Metro.  The balance of 20 percent is held by First Metro Investment Corp.

 Metrobank, the second largest bank in the Philippines based on asset size, holds a diversified business portfolio which includes investment banking, thrift banking, leasing and financing, bancassurance and credit cards.  The bank has over 950 branches nationwide, and a network of 2,300 ATMs.  

Orix is Japan’s first leasing company, and has a proven 54-year track record of profitability. Orix is present in 38 countries, with a diversified clientele mix ranging from SMEs to very large corporations.