Fitch places 12 Sri Lankan non-bank financial institutions on Rating Watch Negative
April 27, 2022 09:35 am
Fitch Ratings has placed the National Long-Term Ratings of 12 Sri Lankan non-bank financial institutions (NBFIs) on Rating Watch Negative (RWN).
The entities are:
Finance and Leasing Companies:
- Bimputh Finance PLC (Bimputh)
- CBC Finance LTD (CBCF)
- Central Finance Company PLC (CF)
- Fintrex Finance Limited (Fintrex)
- HNB Finance PLC (HNBF)
- LB Finance PLC (LB)
- Mercantile Investments and Finance PLC (MIF)
- People’s Leasing & Finance PLC (PLC)
- Sarvodaya Development Finance Limited (SDF)
- Senkadagala Finance PLC (Senka)
- Siyapatha Finance PLC (Siyapatha)
Securities Firm:
- Asia Securities (Pvt) Ltd (ASPL)
The RWN reflects heightened downside risks to the NBFIs’ credit profiles amid increased economic and financial-market volatility in Sri Lanka.
This risk is exacerbated by the deteriorating sovereign credit profile (Long-Term Foreign-Currency Issuer Default Rating (IDR): C, Long-Term Local-Currency IDR: CCC) and the ensuing risks to the stability of the financial system, the US-based credit rating agency said in its statement.
Fitch says it will review the National Ratings of financial-institution subsidiaries of Sri Lankan corporates that are not included above separately, if needed.
