PCI Leasing gets high rating

PCI Leasing and Finance Inc. (PCILF) has received a PRS 1 credit rating for its proposed P1-billion short-term commercial paper, maintaining its record as a top credit rated leasing firm and the largest STCP issuer in the leasing and finance industry.

The leasing subsidiary of Equitable PCI Bank received the rating, which denotes the strongest capability for timely payment of debt instrument issue on both interest and principal, from Philippine Rating Services Corp. (PhilRatings).

The latest issue is higher than the company’s P500-million note issue in 2004, which was assigned a similar rating. PCILF increased the amount this year in light of an expansion in volume of bookings and an increase in its portfolio.

PhilRatings said it considered the sound liquidity position, the more than adequate option available to PCILF and its ability to generate cash to meet short-term obligations in assigning the highest rating.

PCILF president Manolo Arzadon said revenue and profits continue to improve on the back of enhancements in operating efficiencies and efforts to improve synergies with its parent company.

In 2004, total revenues were at P865 million, up by 11 percent from that of the previous year. Net income was at P354 million, representing a 37-percent hike from that of 2003.

Debt-to-equity ratio remains quite conservative at 0.68 as of year-end 2004 even as the company relied more heavily on borrowings to support its portfolio growth.

PCI Leasing is one of the country’s largest leasing and financing company in terms of loan and lease portfolio, capitalization, income and branch network. Its array of innovative services include direct lease, sale and leaseback, amortized commercial loans, receivables discounting, installment paper purchase and factoring of receivables.