Vallibel Finance requests withdrawal from Fitch; opts for RAM Ratings

Thursday, 4 April 2013 00:57 - - {{hitsCtrl.values.hits}}

Vallibel Finance PLC has requested a withdrawal from the Fitch Ratings, as per a company spokesman. The withdrawal of the finance company from Fitch Ratings results in Ram Rating entering as the rating agency for the institution in future.

RAM Ratings Lanka has assigned Vallibel Finance PLC respective long and short-term initial financial institution ratings of BB+ for the long term with a stable outlook and NP for the short- term. The rating comes in consideration of aggressive loan growth and increases in new deposits.

Respected investor Dhammika Perera’s Vallibel Investments own a majority72.87 per cent of Vallibel Finance. The company provides a gamut of financial services including leasing and hire-purchase, pawn broking, micro finance facilities out of the nine branches and five collection centres it operates in a growing island-wide network.

Emerging financial virtuoso Vallibel Finance recorded momentous growth with the company announcing an impressive balance sheet for the nine months ending December 2012. Pre-tax profits rose to Rs. 333.7 m, a 7% increase over the corresponding period of the previous financial year.

Total assets expanded to Rs. 8.66 b from a previous Rs. 6.67 b, an increase of 30%. Deposits, the strongest indication of public confidence, swelled to Rs. 5.45 b from Rs. 3.91 b, an increase of Rs. 1,546 m from Rs. 905 m in the same period in 2011.