Asset Quality

Jan 25, 2012 (LBO) - RAM Ratings Lanka has upgraded the long- and short-term financial institution ratings of Citizens Development Business Finance (CDB) to BBB and P2 from BBB- and P3 with a stable outlook on the long-term rating. The rating agency has also upgraded the long-term rating of CDB’s 250 million rupee unsubordinated unsecured redeemable unlisted debentures to BBB, from BBB-, a statement said.

"The rating upgrade reflects the company’s improving asset-quality indicators and strengthened capitalisation following an equity infusion in August 2011," it said.

The full rating report follows:

RAM Ratings Lanka has upgraded the respective long- and short-term financial institution ratings of Citizens Development Business Finance PLC (CDB or the Company), from BBB- and P3 to BBB and P2. At the same time, we have also upgraded the long-term rating of CDB’s LKR 250 million Unsubordinated Unsecured Redeemable Unlisted Debentures, from BBB- to BBB. The outlook on the long-term ratings is stable. The rating upgrade reflects the Company’s improving asset-quality indicators and strengthened capitalisation following an equity infusion in August 2011.

CDB’s ratings continue to be supported by it