Finance Rating

Mar 23, 2012 (LBO) - RAM Ratings Lanka has confirmed Bartleet Finance Limited’s long- and short-term financial institution ratings at BBB- and P3 but revised the outlook to negative from stable, a statement said. At the same time, the long-term issue rating of BFL’s 204 million rupee unsubordinated unsecured redeemable debenture has also been confirmed at BBB- with the outlook on the long-term ratings being revised from stable to negative.

"The revision of the outlook is underpinned by BFL’s heightened exposure to equity investments, which has increased its vulnerability to market risk and eroded its liquidity levels, as well as rising overheads driven by its branch expansion," it said.

The rating agency said the ratings are supported by the "sturdy franchise" of the Bartleet Group and the company’s moderate funding and capitalisation levels.

The full rating report follows:

RAM Ratings Lanka has reaffirmed Bartleet Finance PLC’s (BFL or the Company) respective long- and short-term financial institution ratings at BBB- and P3. Simultaneously, the long-term issue rating of BFL’s LKR 204 million Unsubordinated Unsecured Redeemable Debenture (2011/2016) has also been reaffirm