Fitch affirms and withdraws Vallibel Finance’s ‘BB-(lka)’ Rating

Friday, 5 April 2013 03:45 -     - {{hitsCtrl.values.hits}}

Fitch Ratings Lanka has affirmed and simultaneously withdrawn Sri Lanka-based Vallibel Finance PLC’s (VFL) National Long-Term rating at ‘BB-(lka)’. The Outlook is Negative.

VFL’s rating and outlook reflect its small but rapidly growing asset base which has expanded nearly five-fold since March 2010, its modest profitability and a developing franchise. Deterioration in asset quality indicators, along with comparatively weak capitalisation, is also a risk.

Elevated liquidity pressures are a risk for all finance companies in Sri Lanka, including VFL. Fitch has withdrawn the rating as VFL has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the rating. Accordingly, Fitch will no longer provide ratings or analytical coverage for VFL.