Asset Base

Jan 25, 2012 (LBO) - Fitch Ratings has confirmed Sri Lanka's Vallibel Finance's (VFL) national long-term rating at 'BB-(lka)' with a stable outlook.





"VFL's rating factors in its small but growing asset base, healthy profitability and modest asset quality," the rating agency said in a statement.

"The rating is constrained by VFL's modest capitalisation which is lower than the Fitch-rated RFC (registered finance company) average of 17.

7 percent at end-March 2011."

The full rating report follows:

Fitch Ratings has affirmed Sri Lanka's Vallibel Finance PLC's (VFL) National Long-Term rating at 'BB-(lka)'. The Outlook is Stable.

VFL's rating factors in its small but growing asset base, healthy profitability and modest asset quality.

The rating is constrained by VFL's modest capitalisation which is lower than the Fitch-rated RFC (registered finance company) average of 17.7% at end-March 2011 (FYE11).

Sustained improvements in capitalisation while maintaining asset quality and profitability following its growth phase may lead to a rating upgrade.

A further dilution in capitalisation below that of its rating peers could lead to a do