ORIX METRO Leasing and Finance Corporation (ORIX METRO), a unit of the Metrobank Group, was assigned a high issuer credit rating of PRS Aa plus (corp.)with a Stable outlook by Philippine Rating Services Corporation (PhilRatings).
A company rated PRS Aa (corp.) differs from the highest rated corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
A Stable Outlook, on other hand, indicates that a rating is likely to be maintained or to remain unchanged in the next 12 months.
In assigning the rating, PhilRatings said it took into account ORIX METRO’s status as a strong market player; its strong shareholders and highly-experienced management team; and the marginal drop in its core earnings, notwithstanding significant challenges brought by the COVID-19 pandemic.
ORIX METRO is jointly-owned by Metropolitan Bank and Trust Company (Metrobank), ORIX Corporation and First Metro Investment Corporation (FMIC) with shareholdings of 40 percent, 40 percent and 20 percent, respectively.
The firm receives strong support from the Metrobank Group, one of the country’s biggest financial conglomerates, in the form of active referrals, funding and operational support.
It also benefits from the expertise of ORIX Corporation as an internationally-recognized diversified financial services group.
For fiscal year ended September 30, 2020, ORIX METRO’s top line registered a marginal decrease of 8.0 percent year-on-year (YoY), from P7.7 billion to P7.1 billion.
On account of the disruptions caused by the COVID-19 outbreak, main revenue coming from leasing, financing and services slightly declined by 7.8 percent to P6.5 billion.
In anticipation of weakness in its portfolio due to the ongoing pandemic, ORIX METRO substantially increased its provisioning, from P363.2 million in fiscal year 2019 to P1.4 billion in 2020.
Given the almost fourfold increase in provisioning, net income amounted to P219.4 million, down 79.9 percent from the previous year.