Feb 12, 2014 (LBO) – RAM Ratings Lanka said it had upgraded a ‘BB-‘ rating of BRAC Lanka Finance Plc (formerly Nanda Investments, by two levels to ‘BB+’ following an ownership change. l The rating has a stable outlook.
Bangladesh-based BRAC bought into the firm and RAM said support was expected from the parent.
The company’s gross non performingloans had risen from 6.45 percent in September 2013 from 4.86 percent in March.
However it had strong capital adequacy with 40 percent Tie-I capital.
The full statement is reproduced below:-
RAM Ratings Lanka upgrades BRAC Lanka Finance PLC’s ratings to BB+/Stable/NP
RAM Ratings Lanka has upgraded BRAC Lanka Finance PLC’s
(BRLF or the Company, previously known as Nanda
Investments and Finance PLC (Nanda)) long-term financial
institution ratings to BB+ from BB-. At the same time, the
short-term rating has been reaffirmed at NP. Meanwhile, the
Positive Rating Watch on the Company has been lifted and
the stable outlook on the long-term rating has been
In July 2013, RAM Ratings Lanka placed BRLF’s long and
short-term ratings on Rating Watch (with a positive outlook)