By Ishara Gamage
Ceylon Finance Today: Sri Lanka's troubled Lanka Ratings Agency Limited ('LRA') has begun negotiations for the sale of its majority stake in India's CARE Ratings, Securities and Exchange Commission of Sri Lanka (SEC) officials revealed to Ceylon FT yesterday.
"Both parties will meet our Commission hierarchies, soon. We are currently re-examining their Credit Rating Agency license," officials said.
When contacted by the Ceylon FT, LRA chairman Preethi Jayawardena said that he accepted their willingness to divest their majority stake to possible foreign parties but refused to reveal their names .
There are several interest parties, we are currently negotiating with them and a due diligence is on the cards, Jayawardena said.
Our aim was to develop a local rating agency. We recently hired two well experienced international rating experts to strengthen our analysts' team but, it is most unfortunate that the prevailing situation has arisen and that is why we have decided to sell to a foreign party, he said. According to the CARE Ratings web site, they commenced their operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India. With the rating volume of debt as Rs. 68.08 lakh crore (as of March 31st, 2015), CARE Ratings has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO grading.
Lanka Ratings majority shareholding with ICON private ltd & Sampath, Commercial, NDB & HNB banks collectively had 30 % stake.
The Securities and Exchange Commission of Sri Lanka (SEC), at its meeting held on the 29th of June 2015, decided that due notice be given to members of the public that, registration of Lanka Rating Agency Limited (LRA) as a Market Intermediary under the category of 'Credit Rating Agency' lapsed on 30th June 2015.
The SEC noted that LRA has not as at date forwarded a duly completed and therefore valid application. But Lanka Ratings said that they already submitted that application.
LRA had more than 140 clients.
www.ceylontoday.lk
Ceylon Finance Today: Sri Lanka's troubled Lanka Ratings Agency Limited ('LRA') has begun negotiations for the sale of its majority stake in India's CARE Ratings, Securities and Exchange Commission of Sri Lanka (SEC) officials revealed to Ceylon FT yesterday.
"Both parties will meet our Commission hierarchies, soon. We are currently re-examining their Credit Rating Agency license," officials said.
When contacted by the Ceylon FT, LRA chairman Preethi Jayawardena said that he accepted their willingness to divest their majority stake to possible foreign parties but refused to reveal their names .
There are several interest parties, we are currently negotiating with them and a due diligence is on the cards, Jayawardena said.
Our aim was to develop a local rating agency. We recently hired two well experienced international rating experts to strengthen our analysts' team but, it is most unfortunate that the prevailing situation has arisen and that is why we have decided to sell to a foreign party, he said. According to the CARE Ratings web site, they commenced their operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India. With the rating volume of debt as Rs. 68.08 lakh crore (as of March 31st, 2015), CARE Ratings has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO grading.
Lanka Ratings majority shareholding with ICON private ltd & Sampath, Commercial, NDB & HNB banks collectively had 30 % stake.
The Securities and Exchange Commission of Sri Lanka (SEC), at its meeting held on the 29th of June 2015, decided that due notice be given to members of the public that, registration of Lanka Rating Agency Limited (LRA) as a Market Intermediary under the category of 'Credit Rating Agency' lapsed on 30th June 2015.
The SEC noted that LRA has not as at date forwarded a duly completed and therefore valid application. But Lanka Ratings said that they already submitted that application.
LRA had more than 140 clients.
www.ceylontoday.lk
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