Fitch Ratings has assigned JSC TBC Leasing (TBCL) a Long-Term Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook.
TBCL's IDRs are driven by support from TBC Bank (BB-/Stable). Fitch's view of a high probability of support is based on full ownership by, close integration with and the record of capital and funding support from TBC Bank.
TBCL operates solely in Georgia, its domestic market, and is the market leader in Georgian leasing. The company mainly provides financial leasing to the corporate clientele of TBC Bank as well as to SMEs, microbusinesses and individuals. TBCL's clients are often higher-risk borrowers than those of TBC Bank, but this is partly mitigated by access to liquid collateral and from the adequate pricing of risk.
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 GEL 6 million in December 2019 and, at the same time, approved an additional injection in the amount of GEL 2.5 million, to be disbursed in 2020 based on TBCL's needs. 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.
See all the news
Turkey to open doors to 31 countries for health tourism
Coronavirus: Boris Johnson moved to intensive care
First-Stage Land Usage Permit for APM Terminals Poti
How will Nenskra HPP Reduce the Electricity Import?
Carrefour: The product will be on the shelves with the prices same as before
Differences between tobacco and nicotine products
OECD cuts 2020 global growth forecast over virus
Georgia to export new armored vehicle Didgori Meomari
"Hotels are in shock, reservations are canceled" - Shalva Alaverdashvili
Georgian brand Entrée enters the UK market and opens its first facility in London
Frontera claims that Georgian government has started harassing the company since 2013
Company HotelFriend offers convenient eComerce platform to Georgian Touroperators
Will the head of "Anaklia Deepwater Port Development Agency" be replaced?
TOP-10 Exporter Companies from Georgia to Russia
TBC Bank Group announces certain changes to the composition of the Management Board
Silknet signed Memorandum of Understanding with Global Communications Company One Web
Prosecutor’s Office allows Avtandil Tsereteli to leave the country
Mamuka Khazaradze: We want to avoid arbitration, but the Consortium is ready for that
Reuters: Dutch city tells floating Georgian monastery to cast off
TBC Bank Group Shares up by 6.3% WoW on the LSE