Fitch has affirmed ratings of 10 Sri Lankan finance companies. They are, People’s Leasing & Finance, Central Finance Company, Melsta Regal Finance Ltd, HNB Grameen Finance Limited, LB Finance PLC, Siyapatha Finance, Senkadagala Finance, AMW Capital Leasing and Finance, Singer Finance and Mercantile Investments and Finance. In addition, Fitch assigned Siyapatha’s proposed subordinated debentures an expected rating of ‘BBB+(lka)(EXP)’.
The rating actions follow Fitch’s periodic review of the large and mid-sized finance companies in Sri Lanka.
Fitch expects capitalization in the sector to come under pressure as a result of asset quality pressures stemming from a challenging operating environment and unfavorable weather conditions and declining profitability due to higher funding and credit costs.
Fitch sees that the shift in the business mix of the entities considered in this peer review has become more apparent given the slowdown in the vehicle financing segment following the increase in import tariffs, imposition of lower allowable loan-to-value ratios coupled with a high interest rate environment.
The rating actions follow Fitch’s periodic review of the large and mid-sized finance companies in Sri Lanka.
Fitch expects capitalization in the sector to come under pressure as a result of asset quality pressures stemming from a challenging operating environment and unfavorable weather conditions and declining profitability due to higher funding and credit costs.
Fitch sees that the shift in the business mix of the entities considered in this peer review has become more apparent given the slowdown in the vehicle financing segment following the increase in import tariffs, imposition of lower allowable loan-to-value ratios coupled with a high interest rate environment.
www.dailynews.lk
No comments:
Post a Comment