Fitch Ratings Lanka Ltd has assigned an "A (lka)" National Long - term rating with a positive outlook for Sampath Leasing and Factoring Ltd (SLFL), a fully owned subsidiary of Sampath Bank PLC, Sampath Leasing said in a press release.
Commenting on the rating, Chairman of the company Arthur Senanayake said that "the company has now established itself in a profitable and niche market within an intensely competitive leasing market. This will open new vistas of opportunity for the company paving the way to introduce innovative product variants to its core products - leasing and factoring. I am sure that SLFL will be a vibrant company within the Sampath Bank Group", he added.
Fitch Ratings in its rating report has positively commented on the support available to SLFL from its parent company through strategic and operational linkages, which augurs well for synergies between the two companies. Aravinda Perera, Managing Director of Sampath Bank PLC and a Director of SLFL, noted that SLFL's contribution to the group profits has increased significantly and its performance is augmented by drawing on the core strengths of Sampath Bank; in particular its wide geographical presence.
The company has had two successful years of operation, reporting post-tax profits of Rs 127 million and Rs 192 million for the financial years 2010 and 2011, respectively. "The Fitch report also stated that SLFL's asset quality has improved considerably in its leasing portfolio. The report further reiterated that selective lending and close monitoring of factoring clients has enabled SLFL to maintain good asset quality in its factoring portfolio as well. The report also added that SLFL's risk appetite for potential credit losses in its factoring portfolio is low.”