Fitch Places 12 Sri Lankan non-bank financial institutions on Rating Watch Negative

Fitch Ratings has placed the National Long-Term Ratings of 12 Sri Lankan non-bank financial institutions (NBFIs) on Rating Watch Negative (RWN).

The entities are:

Finance and Leasing Companies:

1. Bimputh Finance PLC (Bimputh)
2. CBC Finance LTD (CBCF)
3. Central Finance Company PLC (CF)
4. Fintrex Finance Limited (Fintrex)
5. HNB Finance PLC (HNBF)
6. LB Finance PLC (LB)
7. Mercantile Investments and Finance PLC (MIF)
8. People’s Leasing & Finance PLC (PLC)
9. Sarvodaya Development Finance Limited (SDF)
10. Senkadagala Finance PLC (Senka)
11. Siyapatha Finance PLC (Siyapatha)

Securities Firm:

1. Asia Securities (Pvt) Ltd (ASPL)

The RWN reflects heightened downside risks to the NBFIs’ credit profiles amid increased economic and financial-market volatility in Sri Lanka.

This risk is exacerbated by the deteriorating sovereign credit profile (Long-Term Foreign-Currency Issuer Default Rating (IDR): C, Long-Term Local-Currency IDR: CCC) and the ensuing risks to the stability of the financial system.

Fitch will review the National Ratings of financial-institution subsidiaries of Sri Lankan corporates that are not included above separately, if needed.

Full Report: Fitch Places 12 Sri Lankan Non-Bank Financial Institutions on Rating Watch Negative