Sept 29, 2006 (LBO) – The Finance Company Ltd (TFC) gets â€˜BBB- (lka)â€™ national long-term rating from Fitch for its upcoming 500 million rupee 5-year unsecured subordinated redeemable debentures. The Financeâ€™s senior debt currently carries a BBB (lka) from Fitch.
As at June, 76 percent of TFCâ€™s funding portfolio had maturities less than a year and the proposed debt issue is expected to lengthen the maturity profile.
The debenture issue will further qualify for Tier II capital and will increase the companyâ€™s capital adequacy position which is at 10.18, just above the minimum statutory requirement of ten percent as at June 2006.
The company which was established in 1940 is the largest registered local finance company and is regulated by the Central Bank of Sri Lanka.
The Finance Company with 32 branches, deals in vehicle financing, real estate financing and property development is also a part of the Ceylinco Consolidated Group. As at December 2005, TFC had an asset base of 25.2 billion rupees.