LeasePlan Corp. N.V.

Furthermore, its international presence in about 28 countries helps service large international corporate clients, which supports the bank's profitability throughout the credit cycle. LeasePlan's main sources of revenue include lease and additional service income, which amounted to about €5 billion in the nine months to Sept. 30, 2022, up 8.3% year-on-year. This value includes maintenance or fleet management fees, car sales at expiry, and insurance. We expect that prices in the second-hand car market will gradually normalize in 2023-2024, following several years of increases on the back of supply chain disruptions. This should have a similar effect on their contribution to the bank's revenue base. We expect to resolve the CreditWatch placement when the transaction with ALD is completed, likely

...The successful completion of the announced deal with ALD could benefit LeasePlan Corp. N.V. (LeasePlan)'s overall credit The successful completion of the announced deal with ALD could benefit LeasePlan Corp. N.V. (LeasePlan)'s overall credit profile. On April 22, 2022, LeasePlan's shareholders and LeasePlan signed the agreement framework with ALD and SociTtT GTnTrale (SG) confirming the terms of the transaction as disclosed at the beginning of 2022 (See "ALD S.A. And LeasePlan Corp. N.V. Ratings Placed on CreditWatch Positive on Proposed Acquisition," published Jan. 11, 2022, on RatingsDirect). When the transaction closes--likely in first-quarter 2023--we expect LeasePlan to become a core subsidiary of the enlarged ALD (NewALD) which in turn would form an integrated part of the parent, SG. This will lead us align the ratings on the NewALD and Leaseplan. The CreditWatch positive placement reflects our view that we would raise our ratings on LeasePlan to 'A-/A-2' from '###/A-3', only if the...

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