TKS Finance Ltd

ICRA Lanka revises the issuer rating of TKS Finance Ltd to [SL] D and suspends the rating

Instrument* Previous Rated Amount
(LKR Mn)
Current Rated Amount
(LKR Mn)
Rating Action
Issuer rating N/A N/A Revised to [SL]D from [SL]B- (Stable); Suspended

 Rating action

ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has revised the issuer rating assigned to TKS Finance Limited (TKSF or the Company) to [SL]D (pronounced S L D[1]) from [SL]B- (pronounce S L B minus) with stable outlook. Further, ICRA Lanka has suspended the rating of the Company.

Rating action

The rating downgrade factors in the extreme stretched liquidity profile of TKSF resulting in it not meeting depositor commitments on demand or at maturity in the recent past. The Company’s financial flexibility would further be constrained following the cancellation of TKSF’s licence issued under the Finance Business Act by the Monetary Board of Sri Lanka. ICRA Lanka has suspended the rating on account of the Company’s failure to provide the requisite information to carry out surveillance exercise.

Links to previous rating rationale:

ANALYST CONTACTS

Mr. Vidura Welathanthri

+94 11 4339907

vidura@icralanka.com

Mr. Dasith Fernando

+94 11 4339907

dasith@icralanka.com

Mr. A.M Karthik

+91 44 45964308

a.karthik@icraindia.com

RELATIONSHIP CONTACT

Mr. W. Don Barnabas  

+94 11 4339907

wdbarnabas@icralanka.com


[1] For complete rating scale and definitions please refer to ICRA Lanka’s website www.icralanka.com or other ICRA Rating Publications


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