August 17 (LBO) – Fitch Ratings has given the flagship finance company of Sri Lanka’s Ceylinco Group, a BBB (lka) rating with a stable outlook, the rating agency said Thursday. Established in 1940, TFC has 32 branches.
The Finance Company (TFC) is a listed company with an asset base of 25.2 billion rupees is largest finance company in Sri Lanka.
A finance company is regulated by the central bank and can take public deposits.
The rating reflects the company’s dominant position in the finance company sector in Sri Lanka, with a 29 percent market share of the sector’s assets, Fitch Ratings Lanka said.
The rating also takes into consideration its main shareholder – the Ceylinco Consolidated Group.
Fitch said the key factors constraining the rating are TFC’s relatively weak asset quality and its profitability indicators compared with main peers, its weak capitalisation position, and its relatively weak risk management framework.
BBB (lka) is an investment grade rating which indicates an adequate credit risk relative to other issuers in the country but changes in circumstances or economic conditions may affect its capacity for timely repayme