Fitch Ratings affirms People’s Leasing & Finance at ‘A- (lka)’

Fitch Ratings has affirmed People’s Leasing & Finance PLC’s (PLC) National Long-Term Rating at ‘A-(lka)’. The outlook is stable.

PLC’s rating reflects its intrinsic financial strength as a large finance and leasing company (FLC) focusing on vehicle financing and other asset-backed loans.

The rating also reflects the significant capital buffers and liquidity levels built up through the country’s economic crisis. PLC’s franchise also benefits from the linkages with its parent, People’s Bank(Sri Lanka) (A(lka)/Stable), the country’s second- largest bank.

“We expect PLC’s core vehicle financing business to benefit from improving economic conditions and the potential liberalisation of vehicle imports. This growth in business volumes will be supported by its solid domestic franchise. Net loans as a share of assets remain below pre-crisis levels (1QFY25: 65%; FY24: 63%; FY21: 81%), but should continue to increase as growth resumes.

Source: Daily News