Apr 04, 2013 (LBO) – Fitch Ratings has confirmed and withdrawn a ‘BB-(lka)’ rating of Sri Lanka’s Vallibel Finance Plc. Therefore, Fitch will no longer have sufficient information to maintain the rating.
Accordingly, Fitch will no longer provide ratings or analytical coverage for VFL. The rating has a negative outlook. Fitch said it had withdrawn the rating as VFL has chosen to stop participating in the rating process.
The full statement is reproduced below
Fitch Affirms and Withdraws Vallibel Finance’s ‘BB-(lka)’ Rating
Fitch Ratings-Colombo/Seoul/Singapore-04 April 2013: Fitch Ratings Lanka has affirmed and simultaneously withdrawn Sri Lanka-based Vallibel Finance PlC’s (VFL) National Long-Term rating at ‘BB-(lka)’. The Outlook is Negative.
Rating Action Rationale
VFL’s rating and outlook reflect its small but rapidly growing asset base which has expanded nearly five-fold since March 2010, its modest profitability and a developing franchise.
Deterioration in asset quality indicators, along with comparatively weak capitalisation, is also a risk. Elevated liquidity pre