Orix Metro sets P10-B bond offering

Leasing and finance firm Orix Metro Leasing and Finance Corp., a unit of the Metrobank group, plans to raise up to P10 billion from a bond offering.

The proposed offering obtained an issuer rating of “PRS Aa plus” with a stable outlook from local credit watchdog Philippine Rating Services Corp. (PhilRatings).

A company rated PRS Aa differs from the highest-rated corporates—or those who are rated PRS Aaa—only to a small degree. They are deemed to have strong capacity to meet their financial commitments relative to that of other Philippine corporates. The “plus” further qualifies the assigned rating.

A stable outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

In a statement, Philratings said the assigned issuer rating for Orix Metro took into consideration “the company’s status as a leading market player, its strong shareholders and highly experienced management team; and expectations of tempered profitability for the company.”

PhilRatings also took into account the sustained overall growth of the leasing and financing industry, despite the slowdown in the expansion of the domestic economy.

Orix Metro is one of the country’s leading and financing companies. Its services include finance lease, mortgage loans, receivables discounting and operating lease. Its nationwide network of 112 branches is the largest compared to its peers, while it has 8,046 lease units comprised of cars, pickups, vans, and light trucks.

Orix Metro also holds a quasibank license from the Bangko Sentral ng Pilipinas.

Orix Metro is 40-percent owned each by Metropolitan Bank & Trust Co. and Orix Corp. of Japan and 20-percent owned by First Metro Investment Corp.

Orix Metro forecasts that margins and returns will be lower compared to historical levels, while bottom line growth will moderate for the projected period 2019 to 2021, largely due to higher interest expense. —DORIS DUMLAO-ABADILLA