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Parental Support

Jan 06, 2012 (LBO) - Fitch Ratings Lanka has upgraded People's Leasing Company's (PLC) National Long-Term rating to 'A+(lka)' from 'A(lka)' and People's Finance's (PF) to 'A-(lka)' from 'BBB(lka)'. The outlooks on both ratings are stable, the rating agency said in a statement.

PLC's outstanding 1,155 million rupee senior unsecured redeemable debentures have also been upgraded to 'A+(lka) from 'A(lka)'.

"The upgrade reflects the increased capacity of the systemically important state-owned parent - People's Bank - to support PLC and PF," it said.

The full statement follows:

Fitch Ratings Lanka has upgraded People's Leasing Company Plc's (PLC) National Long-Term rating to 'A+(lka)' from 'A(lka)' and People's Finance Plc's (PF) to 'A-(lka)' from 'BBB(lka)'. The Outlooks are Stable. PLC's outstanding LKR1,155m senior unsecured redeemable debentures have also been upgraded to 'A+(lka) from 'A(lka)'.

The upgrade reflects the increased capacity of the systemically important state-owned parent - People's Bank (PB, 'AA(lka)'/Stable) - to support PLC and PF. PB's National Long-Term was upgraded to 'AA(lka)'/Stable from 'AA-(lka)'/Positive in November 2011 to reflect Fitch's view o

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