Mar 23, 2009 (LBO) – RAM Ratings has put the BB+ rating on Sri Lanka’s Asian Finance Limited (AFL), a member of the troubled Ceylinco group, on rating watch with a ‘developing’ outlook. On March 16, the Central Bank said state-run Lankaputhra Development Bank has been made its managing agent.
RAM Ratings Lanka said the rating watch will be resolved once the role and plan of Lankaputhra Development Bank and AFL’s current financial position and performance is made known.
A rating watch indicates that the rating is under review and could be changed. A ‘positive’ outlook indicates that the rating may be upgraded and a ‘negative’ outlook means a rating may be downgraded.
RAM says a ‘developing’ outlook indicates that future events are unclear and the rating may be either raised or lowered.
AFL is regulated by Sri Lanka’s central bank and is part of the Ceylinco group. Ceylinco firms have been stressed since Golden Key Credit Card Company, an unlisted member of the Ceylinco group, collapsed late lat year,
“The Rating Watch (with a developing outlook) highlights potential changes in the Company’s credit profile,” the rating agency said in a statement.