Dec 13, 2011 (LBO) – Fitch Ratings said a ‘BB+(lka)’ rating of Sri Lanka’s Trade Finance and Investment (TFI), a registered finance company, has been confirmed with a stable outlook. “The rating factors in TFI’s strong asset quality, capitalization, and profitability metrics for a small-sized registered finance company (RFC),” Fitch said.
“The rating is, however, constrained by its narrow product diversity, comprising mainly hire purchase and leases, and limited funding sources.”
The firm was strongly capitalized with high equity-to-asset ratio of 57 percent in the first half of 2012, compared with the sector average of 16 percent.
Incorporated in 1978, TFI is currently run by the owners of Jetwing Group (the Cooray family), which has over a 75 percent stake.
TFI was listed in the Stock Exchange in September 2011 and currently has an asset base of 739 million rupees. It has branches in Colombo, Jaffna and Kilinochchi.
The full statement is reproduced below
Fitch Affirms Trade Finance and Investments PLC at ‘BB+(lka)’
Fitch Ratings-Colombo/Mumbai/Singapore-12 December 2011: Fitch Ratings Lanka has affirmed Trade finance and Investmen