Fitch Rates People's Leasing's Senior Debt Final 'AA-(lka)'

Fitch Ratings has assigned People's Leasing and Finance PLC's (PLC; B+/AA-(lka)/Stable) proposed senior unsecured debentures of up to Rs 3bn a final National Long-Term Rating of 'AA-(lka)'.

The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on 8 August 2014. The debentures are likely to have tenors of three and four years with fixed-rate coupon payments. PLC expects to use the proceeds for working capital purposes.

The proposed debenture is rated at the same level as PLC's National Long-Term Rating of 'AA-(lka)' in accordance with Fitch's criteria as they constitute unsecured and unsubordinated obligations of the company.

PLC's National Long-Term Rating reflects Fitch's view that PLC's parent, the state-owned and systemically important People's Bank (PB; AA+(lka)/Stable), has a high propensity but limited ability to provide extraordinary support to PLC if required.

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