The JCR-VIS Credit Rating Agency has revised the medium- to long-term ratings of Capital Assets Leasing Corporation (Calcorp) from BB+ (Double B plus) to BB (Double B).
The short-term rating has been maintained at B (single B). The ratings continue to be on 'rating watch' pending amalgamation of International Multi Leasing Corporation Ltd, (IML) into Calcorp.
The ratings take into consideration the stagnation in operations of the Calcorp due to the pending merger. The concentration in the leases and loans portfolio and infection in this portfolio has remained high, while spreads have improved over the last one year due to renegotiations of borrowing rates. These need to be further improved to cover the full overheads of the company.
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