Finance Rating

Dec 17, 2009 (LBO) – RAM Ratings Lanka has confirmed the long term rating of Bartleet Finance Limited at BBB- and its short term rating at P3, but its outlook has been cut to 'negative' from 'stable'. RAM said the outlook cut was due to higher defaults in some loans segments that have pressured the company’s capital.

"Nonetheless, BFL’s ratings are still supported by its established franchise and improved liquidity position," RAM Ratings said.

Bartleet Finance is part of the Barleet Group, a local conglomerate that has been in business for over a century. The firm was also planning a public listing.

It remains a small player in the registered finance company, accounting for only 1.77 percent of the industry’s asset base as at end-March 2009. Although it provides retail loans, it focuses on the disbursement of leases and hire-purchase facilities.

This core portfolio, which accounted for 87.36 percent of total loans as at end September 2009, is healthier than the industry’s due to good recovery and monitoring.

The default rate on Bartleet Finance's combined portfolio of hire purchase facilities and leases clocked in at 4.47 percent as at the same date. However, over

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