LOLC Group credit rating upgraded by ICRA Lanka
View(s):ICRA Lanka Ltd, a group company of Moody’s Investor Services, has upgraded the credit rating of LOLC (Lanka ORIX Leasing Company PLC) and its financial services subsidiaries LOLC Finance PLC (LOFC) and Commercial Leasing & Finance PLC (CLC) to [SL] A wit stable outlook from [SL] A- with stable outlook.
“The ratings continue to factor LOLC Group’s long track record in the retail finance sector, its leadership position in the Sri Lankan retail finance market, professional and experienced management team and adequate risk management systems with strong retail franchise,” LOLC said in a media release It said ICRA Lanka’s assessment to revise the ratings follows the improvement in the asset quality and profitability indicators of LOLC over the last 12-18 months.
Along with the upgrade of the credit rating of the company, ICRA Lanka has upgraded the credit rating of the Rs. 5,000 million Long Term Senior Unsecured Redeemable Debenture program and Rs. 750 million Long Term Unsecured Redeemable Debenture program to[SL]A (pronounced SL A) with stable outlook from [SL]A- (pronounced SL A minus) with stable outlook.
Group Managing Director Kapila Jayawardena said the upgrade of LOLC’s credit rating reflects the trust and confidence placed on the group by the public as a premier financial services provider in the country. With a wide array of product offerings ranging from microfinance, leasing working capital finance and Islamic finance the LOLC Group is in the forefront of providing access to finance with LOLC Finance PLC having the largest deposit base among non-bank financial institutions, the release said.
“The upgrade of the credit rating of LOLC Finance PLC continues to factor the company’s robust franchise, healthy competitive position given its superior market share and its professional and experienced management team. ICRA Lanka has taken note of the improvements in LOFC’s Asset-Liability Maturity (ALM) profile in terms of moderation in shorter term ALM gaps and improvement in the overall profitability levels,” the release noted.