RAM Ratings has reaffirmed Alliance Finance PLC respective long- and short-term financial institution ratings at BBB (with a stable outlook) and P2.
The rating agency said Alliance reported a better-than-average gross non-performing-loan (NPL) ratio of 3.31%. Considering the industry’s generally deteriorating asset quality, RAM Ratings said it has a positive view of Alliance’s ratio. Meanwhile, the company’s provisioning level remained superior at 94.92%.
Concurrently, its exposure to share trading came up to a moderate 5.58% of its total assets while exposure to inventories such as cars and furniture stayed at 3.73%. Alliance’s healthy asset quality had also enabled it to reduce its provisions from Rs 18.04 million in the year to end March 2006 to Rs 14.75 million in 2006-07. As a result, the company’s pre-tax profit leapt 23.67% year-on-year to Rs 100.10 million over the same span.