Mar 27, 2013 (LBO) – Sri Lanka’s Central Finance Plc, a registered finance company will sell 2.0 billion rupees in fixed rate debentures, Fitch Ratings said. Key Rating Drivers
CF’s ratings factor in its strong franchise and capitalisation, supported by robust profitability and its 55-year operating history. CF is one of the largest licensed finance companies (LFCs) holding 13% of the sector’s assets as at end-2011.
An upgrade of CF’s rating is contingent upon greater product and funding diversity together with increased funding flexibility commensurate with higher category peers. Conversely, a sustained weakening in capitalisation due to deterioration in asset quality impacting profitability could result in a downgrade.
Established in 1957, CF is 21.9% held by the Wijenaike family – the founders of the company. Corporate Service Pvt Ltd holds a further 16.11% and the remainder is publicly held.
The debentures have been given an expected rating of ‘A+(lka)(EXP)’ pending final documentation.
Fitch said the money will be used to finance lending and also maturity mismatches.
The full statement is repro