Empower your business in Sri Lanka and internationally with Prifinance expert corporate and financial services. Streamline company formation and investment opportunities with our tailored advice and solutions.

Credit Control

Dec 13, 2010 (LBO) - Fitch Ratings Lanka has confirmed Senkadagala Finance Company's (SFC) national long-term rating at 'BBB+(lka)' with a stable outlook, a statement said. The company was established in 1968 by the Balasuriya family, who own 90 percent of SFC's equity. "SFC's rating reflects its long operating history and good capital structure, as well as its relatively good credit control systems and processes," the rating agency said.

"The rating is however constrained by SFC's evolving economies of scale and market share in core operations in relation to some of its larger peers."

An upgrade of SFC's rating is contingent upon the continued consolidation of its lending base and greater diversity of its funding sources, while sustaining healthy asset quality and profitability, Fitch said.

"Conversely, a downgrade could occur in the event of an unexpected and sustained weakening of SFC's asset quality or profitability - however this is less likely over the medium-term."

SFC's loan book grew by eight percent in the six months to end-September 2010 (6M11) as macro-economic credit growth gradually picked up, in contrast to a three percent contraction in th

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x