"The upgraded ratings reflect LBF’s consistently expanding market share and improving asset-quality indicators."
The full statement follows:
RAM Ratings Lanka has upgraded LB Finance PLC’s (LBF or the Company) long- and short-term financial institution ratings, from BBB+/P2 to A-/P2, respectively; the long-term rating has a stable outlook. At the same time, we have also revised upwards the long-term ratings of LBF’s debt issues.
The upgraded ratings reflect LBF’s consistently expanding market share and improving asset-quality indicators. The Company’s portfolio has been charting strong growth in recent years, with its market share augmenting from 7.36% as at end-March 2007 to 13.90% as at end-March 2011. As such, LBF has emerged as the second-largest registered finance company (RFC) in Sri Lanka.
Despite the rapid growth of its credit assets, the C