Lanka Rating Agency fate hangs in balance

29 June 2015 06:25 am - 1 - {{hitsCtrl.values.hits}}

A A A

The licence of Lanka Rating Agency (LRA) is scheduled to expire tomorrow, and its future of remaining as a registered rating agency with the Securities and Exchange Commission (SEC) hangs in balance.

According to sources, LRA has so far been unable to provide the SEC with credible proof of an agreement it has with a recognized foreign rating agency providing them with technical assistance.

SEC’s directive barring LRA from issuing ratings with effect from March 25 was believed to be largely based on the nature of affiliation LRA has with a foreign rating agency.

The SEC, as the official body regulating rating agencies, says a local rating agency applicant should be promoted by a foreign credit rating agency recognized in the country of its incorporation, having at least five years of experience in rating securities.

The website of LRA, formerly RAM Ratings Lanka, says they have a Memorandum of Understanding (MoU) with India’s CRISIL “to obtain the technical assistance and training related to credit rating.”

The rating reports issued by LRA also stated that their technical partner was CRISIL India, the largest rating agency in India, of which the majority shareholder is Standards & Poors.

However, SEC appears to be of the view that an arrangement of this nature is not adequate as it is not a fully-fledged agreement between the two entities.
Mirror Business learns that SEC has written to CRISIL India inquiring about the nature of their relationship with LRA, though there had been no response from CRISIL.

Meanwhile, in an interesting turn of events, LRA had informed the SEC last Friday that they were planning to partner with another leading Indian credit rating agency, despite their earlier stance of having a partnership with CRISIL.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

sacre blieu Tuesday, 30 June 2015 10:49 AM

Farcical, jugglers and confidence tricksters. Throw them out , they are the residual muck of the previous regime, who took cover under the veil of an artfully arranged fictitious campaign of CSR and CC.

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Lanka Rating Agency fate hangs in balance

Comments - 1

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

SL on alert on possible genocide allegations by Canada

Ranil Wickremesinghe caravan moves on despite barking dogs

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Two racing drivers arrested over Fox Hill tragedy

Former MP Palitha Thewarapperuma dies from electrocution

Gota fires back at Cardinal, rebuts allegations

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident