BDO Leasing debt gets high rating

MANILA, Philippines - Philippine ratings Services Corp. (PhilRatings) has assigned the second highest rating to BDO Leasing & Finance, Inc.’s planned issue of P4 billion worth of short-term commercial papers. In a statement, PhilRatings said the PRS 2 Plus it has given the subsidiary of Sy-led Banco de Oro Unibank, Inc. means it has "above average capability for payment of the commercial paper issue on both interest and principal." "The rating reflects (BDO Leasing & Finance’s) solid market position, sound capitalization, synergies with its parent company BDO, and sustained albeit tempered profitability," the local ratings agency said. BDO Leasing & Finance said its debt papers will pay a 4.25% to 5.375% interest. Over 80% of the proceeds will used to pay its creditors, including BDO, Philippine National Bank, United Coconut Planters Bank-Trust, Bank of the Philippine Islands, Land Bank of the Philippines and Standard Chartered Bank with which it has loans that will mature within two months and bear interest ranging from 7.24% to 8.75%. PhilRatings said BDO Leasing & Finance continues to be a major player in the country’s leasing and financing industry. "Capitalization is sound, supported by the company’s large equity base and conservative leverage. — R. A. M. Rubio, BusinessWorld