BAKU, Azerbaijan, Jan.21
By Tamilla Mammadova – Trend:
Fitch Ratings has assigned Georgian JSC TBC Leasing a Long-Term Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook, Trend reports referring to Fitch Ratings.
TBCL is the market leader in Georgian leasing sector. The company mainly provides financial leasing to the corporate clientele of TBC Bank as well as to SMEs, microbusinesses and individuals.
"TBCL’s Integrated Data Retrieval System (IDRS) is driven by support from TBC Bank (BB-/Stable)," said the Fitch.
As reported, TBCL aligns its strategy and risk policies to those of the parent, although TBCL's management is independent in making operational decisions.
"TBC Bank has provided both capital and funding support over the years. To support TBCL's further growth, the parent injected new equity of 6 million lari (over $2 million) in December 2019 and, at the same time, approved an additional injection in the amount of 2.5 million lari ($871,858), to be disbursed in 2020 based on TBCL's needs", the Fitch said.
According to Fitch, TBC Bank provides TBCL subordinated and senior loans as well as letters of support to enable third-party borrowing. It also facilitates TBCL's bond placements.
"TBCL's standalone creditworthiness is constrained by a monoline business model, weaker asset quality and high risk appetite, particularly in respect to credit and FX risks. Positively, TBCL's profitability is high and above TBC Bank's target, highlighting TBCL's positive contribution to the parent's performance", said the Fitch.
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