ICRA Lanka Withdraws Rating of Commercial Credit and Finance PLC

InstrumentCurrent Rated Amount (LKR Mn) Rating Action
Issuer ratingN/A [SL] BBB (Stable); Withdrawn
Guaranteed Redeemable Debentures Programme2,000 [SL] AA(CE) (Stable); Withdrawn
Commercial Paper Programme1,000 [SL] A3; Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] BBB (pronounced SL Triple B) with Stable outlook assigned to Commercial Credit and Finance PLC (“CCFL”/ “The Company”). ICRA Lanka has also withdrawn the short-term rating of [SL] A3 for the Company’s LKR 1,000 million Commercial Paper Programme of the company. ICRA Lanka has also withdrawn the issue rating of [SL] AA (CE) (pronounced as S L double A credit enhancement) with a Stable outlook for the LKR 2,000 Million (LKR 1,288 Mn outstanding) Guaranteed Senior Redeemable Debenture programme of the company. The letters CE in parenthesis suffixed to a rating symbol stand for Credit Enhancement. A CE rating is specific to the rated issue, its terms, and its structure. The CE ratings do not represent ICRA Lanka’s opinion on the general credit quality of the issuers concerned. The withdrawal is as a result of termination of rating agreement(s) entered into by CCFL 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:

Commercial Credit and Finance PLC (CCFL), a registered finance company, offers leasing, hire purchase, business credit facilities, microfinance, factoring, term loans, and other personal loans apart from accepting deposits (fixed and savings). The Company was established in 1982 as a specialized leasing company in Kandy. In October 2009, BG Investments (Pvt) Ltd. acquired the controlling stake of the Company. Since the change of ownership, the Company has rapidly expanded its service locations to 120 from about 22 in FY2012. The Company has an employee base of about 2,800.

Rating history for last three years:

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