Moody’s has downgraded the long and short-term deposit rating of
Spain’s Lico Leasing, concluding a review it conducted earlier this
year.
The rating agency downgraded the lessor’s long-term deposit
rating from A2 to Baa1 and the short-term deposit rating from P-1
to P-2.
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Moody’s said its decision derived from taking account of various
factors, including the potential losses expected in Lico Leasing’s
portfolio, and the weakening of the credit quality of Spain’s
saving banks, which ultimately own the lessor.
The Spanish leasing sector has been particularly badly affected
by the financial crisis, with new business declining by over 58
percent in the second quarter of 2009 and bad debt rising to
unprecedented levels.
A full regional report on Spanish and Portuguese leasing
will appear in the next issue of Leasing Life (October
issue).
Antonio Fabrizio
