TRIS Rating Co., Ltd. has affirmed the “AAA” ratings with “stable” outlook for the Bt30,000 million senior guaranteed debentures under medium-term note (MTN) program (GECL077A, GECL087A) of GE Capital Auto Lease PLC (GECAL). The MTN program is guaranteed by GECAL’s parent company, General Electric Capital Corporation (GECC), a company rated “AAA” and ”Aaa” by Standard and Poor’s (S&P) and Moody’s Investors Service (Moody’s), respectively.
The ratings reflect the unconditional and irrevocable guarantee of the parent company. GECC is wholly-owned by General Electric Capital Services, Inc. (GECS), which is a wholly-owned subsidiary of General Electric Company (GE ), which is also rated “AAA” and “Aaa” by S&P and Moody’s, respectively.
The “stable” outlook reflects the unconditional and irrevocable guarantee by GECAL’s parent, GECC, and also takes into consideration the expectation that GECC will be able to sustain its growth without compromising either its highly flexible and dynamic organization or its prudent risk management system, which has been in place for many years.
TRIS Rating reported that GE’s rating is based on the strength of its stable income, which comes from a diverse range of products and services that it markets to a broad range of consumers and organizations around the world. The diverse sources of revenue provides a platform for steady earnings growth for the GE Group, in which GECC plays a major role as financial unit, despite the cyclical nature of the individual businesses.
TRIS Rating noted that the guarantee is governed by the laws of the State of New York, the United States. The guarantee is unconditional, irrevocable and provides for punctual payment with waiving notice of acceptance by the guarantor. The guarantee ensures that the credit risk of this instrument is the same as the credit risk of the senior unsecured debt of the guarantor, GECC. The guarantee cannot be amended or terminated without the consent of the debentureholders’ representative. In case of a merger or consolidation of GECC, the successor of GECC shall assume this guaranteed obligation, however, the enforceability of the guarantee may be limited by bankruptcy, insolvency or liquidation of the guarantor. Furthermore, while this guarantee is governed by the
laws of the State of New York in the United States, the guarantee may be enforced in a court in Thailand. However, a Thai court can only take action with respect to the assets of GECC within
its jurisdiction. — End
GE Capital Auto Lease PLC (GECAL)
Issue Ratings:
Bt30,000 million senior guaranteed debentures under medium-term note program (MTN):
- GECL077A: Bt6,000 million senior guaranteed debentures due 2007 Affirmed at “AAA”
- GECL087A: Bt400 million senior guaranteed debentures due 2008 Affirmed at “AAA”
Rating Outlook: Stable