ICRA Lanka Withdraws Rating of Alliance Finance Co. PLC
|Instrument||Current Rated Amount (LKR Mn)||Rating Action|
|Issuer rating||N/A||[SL] BBB- (Negative); Withdrawn|
|Secured Asset Backed Trust Certificates||1,000||[SL] BBB (SO) (Negative); Withdrawn|
ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] BBB- (pronounced SL Triple B minus) with Negative outlook assigned to Alliance Finance Company PLC (“AFC” or “the Company”). ICRA Lanka has also withdrawn the issue rating of [SL] BBB (SO) (pronounced SL triple B Structured Obligation) rating with Negative outlook for the LKR 1,000 Mn asset backed secured trust certificates of AFC. The letters SO in parenthesis suffixed to a rating symbol stand for Structured Obligation. A (SO) rating is specific to the rated issue, its terms, and its structure. The SO rating does not represent ICRA Lanka’s opinion on the general credit quality of the issuer concerned. The withdrawal is as a result of termination of rating agreement(s) entered into by AFC with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka.
The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).
About the Company:
Alliance Finance Company PLC (AFC), is the oldest finance company in Sri Lanka with a history of over 60 years. The key shareholders of the Company include Mr. R.K.E.P De Silva (33.64%), Motor Service station (Pvt) Ltd (13.48%), Ms. D.M.E.P Perera (7.42%) and Mr.D.F.W.S.K. Perera (4.10%) as of Sep-20. The Company grants leasing, hire purchase, micro finance, gold loans and other loans..
Rating history for last three years:
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