TRIS Upgrades GECAL's Company Rating to "A"

                       TRIS  Upgrades GECAL's Company Rating to "A"
Thai Rating and Information Services Co., Ltd. (TRIS) announced Thursday 3 February 2000 that it has upgraded the company rating of GE Capital Auto Lease PLC (GECAL) to "A" from "A-."  The upgrade reflects GECAL's improved strong operations and support from its parent company, General Electric Capital Corporation (GECC). It also considers GECAL's improving risk management control and conservative financial policy, including a leverage no greater than 10:1. In 1999 GECAL saw delinquency rates decline and will report a considerable net profit for 1999 after consecutive losses in 1997 and 1998. Favorable economic conditions have encouraged more demand for automobiles and have created good opportunities for the hire purchase business for big players such as GECAL. 
TRIS reported that GECAL's effective risk control pushed the company's overall delinquency rate for accounts 30 days plus past due down from 27% as of December 1998 to 10% as of September 1999. Based on the Bank of Thailand's three month past due criteria, GECAL's level of non-accrual loans as of September 1999 was 2.75% of its net receivables, which is relatively low when compared with the 23% level of all finance companies with hire purchase business. Improved asset quality reduced loan loss provisioning from Bt704 million in 1998 to Bt344 million as of September 1999. Net interest spread increased from 5.3% in 1998 to 6.2% as of September 1999. GECAL expects to deliver higher net income for the foreseeable future as the hire purchase market rebounds. Net income as of September 1999 was Bt162 million, and the company projected net income of Bt217 million for the end 1999.  
In TRIS's view, GECAL has sufficient sources of third-party funds arranged by its parent company to absorb the anticipated 20% increase in car sales in 2000. Most of its short-term borrowing is completely refinanced and fully hedged. GECC has also committed a US$130 million revolving credit line to be used as GECAL requires.  
 Note:   GE Capital Auto Lease PLC (GECAL)
        Company rating
        Senior debt                                                     Upgraded to A from A-