Oct 26, 2012 (LBO- Sri Lanka’s LOLC group’s ratings have been withdrawn by Fitch Ratings though the underlying ratings with negative outlooks have been confirmed. The parent LOLC’s BBB+(lka) rating, two steps up in the investment grade which also applies to 1.25 billion rupees of senior debt securities has been confirmed.
LOLC’s ratings were confirmed due to improvements to its credit profile in the six months to 30 June 2012, compared with 31 December 2011, coming from reported lower leverage extension of debt maturities through the sale of debentures, Fitch said.
The Negative Outlook continues to reflect the uncertainty surrounding LOLC’s funding strategy for its future investment activities and associated financial risks.
Higher rated unit, Lanka ORIX Finance Plc’s ‘A-(lka)’ rating and Commercial Leasing and Finance’s ‘A-(lka)’ rating has also been withdrawn.
The full statement is reproduced below:
Fitch Affirms and Withdraws Ratings of Sri Lanka’s LOLC Group
Fitch Ratings-Colombo/Seoul/Singapore-26 October 2012: Fitch Ratings Lanka has affirmed the following ratings of the Lanka ORIX Leasing Company PLC (LOLC) group of