July 05, 2009 (LBO) – Fitch Ratings Lanka said it has confirmed the Commercial Leasing Company (CLC) national rating at ‘A-(lka)’, with a stable outlook.
Ficth said in a statement CLC’s rating reflects its fairly strong financial profile, good asset quality and implied support assumed to be available from its parent, Lanka ORIX Leasing Company (LOLC) which is rated ‘A(lka)’.
In mid-2008, LOLC purchased a 97 percent stake in CLC from its founder shareholders, Commercial Bank of Ceylon, Chemanex and Singer Sri Lanka. It is in the process of acquiring the remaining shares.
While there has been some integration of core operations such as treasury and back office functions, the two companies will continue to function as separate entities, benefiting from strong brand franchises in their respective customer segments.
CLC contributed 40.5 percent to LOLC’s group pre-tax profit for the year to March 2009, and accounted for 23 percent of LOLC group assets.
Since its acquisition in mid-2008 there have been considerable improvements to CLC’s credit and recovery processes, Fitch said.
As a consequence, the company was able to decrease