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.
