"The rating is constrained by TFI's small asset base, limited product diversity and its narrow funding base."
TFI is a 30 year old company has which is in lease and hire purchase of mainly three-wheelers vehicles in Sri Lanka.
Three-wheelers accounted for approximately 90 percent of assets financed at the six-month period ended September 2008.
In 2007, due to emission concerns, the government of Sri Lanka has banned the import of two-stroke Bajaj three-wheelers with effect from early 2008, with a further ban on spare part imports from 2011.
This restricted fresh imports to just the four-stroke three-wheelers.
Fitch says despite the ban, the second hand market for the two-stroke three wheelers remains robust due to perceived cost considerations in maintenance of the four-stroke engine and significant market stocks of spare parts.
Fitch expect