Moody's Investors Service affirmed LeasePlan Corp. N.V.'s long-term senior unsecured bond ratings at Baa2 and declared the firm's outlook as stable.
The rating reflects Moody's view that LeasePlan maintains a "strong franchise in fleet management" that provides relatively stable earnings and effective management of considerable residual value risk. LeasePlan's reliance on wholesale funding is a rating constraint, according to Moody's.
Moody's credited LeasePlan with maintaining strong profitability since 2010 by consistently reporting yearly net profit exceeding 200 million euro ($274.9 million).
In 2013, LeasePlan reported a net profit of 326 million euro ($448.1 million), which represents "massive improvement" of revenues on sales of off-lease vehicles and the improvement of used-vehicle prices.
LeasePlan now manages 1.4 million vehicles globally.
Read Moody's full release here.