LeasePlan Corporation N.V.

Strong operating revenue generation and robust capitalization Leading global position in commercial auto fleet leasing Regulated status as a bank Substantial double leverage risk at the holding level Concentrated business focus with a material exposure to residual value risk A predominantly wholesale funding profile The stable outlook on LeasePlan reflects S&P Global Ratings' view that the bank's ongoing growth strategy and strong pricing power will continue to support its earnings capacity and capital building. This could help reduce the high double leverage at the level of LeasePlan's ultimate holding company. Still, we expect the amount of debt at the intermediate holding companies (holdcos) level will continue constraining the ratings on LeasePlan, whose cash flows are used to service this holdco

...The stable outlook on LeasePlan reflects S&P Global Ratings' view that the bank's ongoing growth strategy and strong pricing power will continue to support its earnings capacity and capital building. This could help reduce the high double leverage at the level of LeasePlan's ultimate holding company. Still, we expect the amount of debt at the intermediate holding companies (holdcos) level will continue constraining the ratings on LeasePlan, whose cash flows are used to service this holdco debt. We also expect LeasePlan's credit risk metrics will remain broadly supportive of the rating. We further expect that the postponement of the IPO announced in October 2018 will not result in a more aggressive financial policy or risk appetite....

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