Fitch Ratings Lanka has placed Sri Lanka-based People’s Merchant Finance PLC’s (PMF) national long-term rating of ‘BB+(lka)’ on Rating Watch Negative and simultaneously withdrawn the rating.
Fitch is withdrawing the rating as PMF 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 PMF.
The Rating Watch Negative reflects Fitch’s assessment of potential weakening of the linkages between PMF and its main shareholder, state-owned People’s Bank (AA+(lka)/Stable) and a potential decline in PMF’s intrinsic financial strength due to a lack of clarity on its future operations.