RAM Ratings has reaffirmed LB Finance PLC’s (LBF) long- and short-term financial institution ratings at BBB- and P3, respectively with a stable outlook for the long-term rating.
Concurrently, RAM Ratings has assigned respective long – and short-term ratings of BB+ and NP to LBF’s proposed Rs 450 million unsecured subordinated redeemable debentures, the rating agency said.
LBF is the third-largest registered finance company (RFC) in Sri Lanka.
The company has continued the aggressive expansion of its loan portfolio, which augmented 57.83% year-on-year in financial year ending March 2008.
The company wrote off Rs 326.67 million of non-performing loans (NPLs) in 2006-07 which had been fully provided for, and maintained a tight grip on new facilities.