More companies prefer local flavour in ratings
View(s):More and more corporates who find their debt ratings lowered through Fitch Ratings Lanka, a global rating agency, are moving to other agencies including Lanka Ratings Agency (LRA) which is locally incorporated.
During the past few years more than 10 companies have moved out of Fitch.
“Many corporates raise money through the stock market through debentures, etc since it is tax free. However to do so, a minimum rating which is triple B plus is required,” an analyst said, adding most firms which are highly geared (heavy borrowings) don’t qualify for this.