LB Finance gets A-(lka) with stable outlook from Fitch

17 December 2015 03:17 am - 0 - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings has assigned LB Finance PLC a national long-term rating at ‘A-(lka)’ with a stable outlook. According to Fitch the rating reflects its established franchise among licensed finance companies, and sustained sound profitability.
“The rating upholds significant efforts and processes put into improve the GRC-(Governance, Risk & Compliance) aspects across the organization. Company has made significant strides in the recent past to improve its risk management capabilities and strengthen independent oversight role of risk management across credit, market, liquidity and operational risk areas” LB Finance Executive Director Niroshan Udage said.
The rating reflects Fitch’s expectation that LB’s profitability remains sufficient to allow for growth, while maintaining capital ratios at the current level.
Company’s cost to income ratio remained the lowest among the peers at 36 percent at end 1H16 on the back of greater scales. The regulatory Tier 1 ratio stood at 16 percent at end FY15.
The rating agency observes that the company’s business focus remains on vehicle financing (75 percent of the loan book at end 1H16) with motor cars and three wheelers accounting for 26 percent and 24 percent of the total at end 1H16.
About 60 percent of its motor car and three wheeler loans comprise unregistered vehicles, which is a positive as they are newly imported and are of a better credit quality.
An upgrade of the company’s rating, Fitch asserts, is contingent upon achieving stronger capitalization levels along with a moderation of its risk appetite. A more comfortable liquidity position would also support the rating.

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 - 0

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.

LB Finance gets A-(lka) with stable outlook from Fitch

Comments - 0

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

Two racing drivers arrested over Fox Hill tragedy

Sri Lankan among NASA’s new crew for next simulated Mars journey

Racing event tragedy leaves seven dead including eight-year-old child

Former MP Palitha Thewarapperuma dies from electrocution

Gota fires back at Cardinal, rebuts allegations

SL on alert on possible genocide allegations by Canada

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

Foreign powers intensify surveillance on Presidential elections as strategic interests take centre stage

New uterine loop for monkey birth control

Sajith avoids reception hosted for Iranian President

Do not be afraid to use weapons, Minister Alles tells police

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?