ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has reaffirmed the issuer rating of [SL]A- (pronounced SL A minus) with stable outlook for First Capital Holdings PLC (FCH or the company).
ICRA Lanka has also reaffirmed the issue rating of [SL]A- (pronounced SL A minus) with stable outlook for the LKR 500 Mn Senior unsecured redeemable debenture programme of the company.
ICRA Lanka has also reaffirmed the [SL]A2+ (pronounced SL A two plus) rating to the LKR 1,000 Mn commercial paper programme of FCH.
ICRA Lanka has taken a consolidated view of FCH and its subsidiaries due to their common brand and senior management team and, other operational and financial linkages between the group entities. The ratings factor in the FCH’s status as the holding company of First Capital Treasuries PLC (FCT), a standalone primary dealer in Sri Lanka with issuer rating of [SL]A- with stable outlook.
The ratings take note of the potential improvement in the business and financial performances of the other group entities, which are engaged in corporate debt structuring, corporate finance, asset management, stock broking, extending margin trading facilities and trustee services. ICRA Lanka however notes that FCH’s performance is largely dependent on performance of FCT, as the contribution from the other entities presently is quite modest.
FCT accounted for 74% of the total consolidated asset base of FCH as on March 31, 2016. Thus, FCH’s performance is expected to be susceptible to the risks inherent in the primary dealer business.
ICRA Lanka has also reaffirmed the issue rating of [SL]A- (pronounced SL A minus) with stable outlook for the LKR 500 Mn Senior unsecured redeemable debenture programme of the company.
ICRA Lanka has also reaffirmed the [SL]A2+ (pronounced SL A two plus) rating to the LKR 1,000 Mn commercial paper programme of FCH.
ICRA Lanka has taken a consolidated view of FCH and its subsidiaries due to their common brand and senior management team and, other operational and financial linkages between the group entities. The ratings factor in the FCH’s status as the holding company of First Capital Treasuries PLC (FCT), a standalone primary dealer in Sri Lanka with issuer rating of [SL]A- with stable outlook.
The ratings take note of the potential improvement in the business and financial performances of the other group entities, which are engaged in corporate debt structuring, corporate finance, asset management, stock broking, extending margin trading facilities and trustee services. ICRA Lanka however notes that FCH’s performance is largely dependent on performance of FCT, as the contribution from the other entities presently is quite modest.
FCT accounted for 74% of the total consolidated asset base of FCH as on March 31, 2016. Thus, FCH’s performance is expected to be susceptible to the risks inherent in the primary dealer business.
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