ICRA Lanka Withdraws Rating of LOLC Finance PLC

Instrument Current Rated Amount (LKR Mn)Rating Action
Issuer RatingN/A[SL]A (Stable); Withdrawn
Listed Subordinated Unsecured Redeemable Debenture Programme3,500[SL]A- (Stable); Withdrawn
Listed Senior Unsecured Redeemable Debenture Programme5,000[SL]A (Stable); Withdrawn
Asset Backed Trust Certificates Programme3,000[SL]A+ (SO) (Stable); Withdrawn
Asset Backed Trust Certificates Programme3,000[SL]A+ (SO) (Stable); Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] A (pronounced SL A) with Stable outlook assigned to LOLC Finance PLC (“LOFC”/ “the Company”). ICRA Lanka has also withdrawn the issue rating of LKR 3,500 Mn Listed Subordinated Unsecured Redeemable Debenture Programme rated [SL]A- (Pronounced SL A minus) with Stable outlook, the issue rating of LKR 5,000 Mn Listed Senior Unsecured Redeemable Debenture Programme rated [SL]A (Pronounced as SL A) with Stable outlook, the issue rating of LKR 3,000 Mn Asset Backed Trust Certificates Programme rated [SL]A+ (SO) (Pronounced as SL A plus Structured Obligation) and the issue rating of LKR 3,000 Mn Asset Backed Trust Certificates Programme rated [SL]A+ (SO) (Pronounced as SL A plus Structured Obligation).The withdrawal is as a result of termination of rating agreement(s) entered into by LOFC 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:

LOLC Finance PLC (LOFC), (set up in 2001) established initially as a wholly owned subsidiary of LOLC Holdings, has a strong Retail Franchise among Licensed Finance Companies (LFCs) in Sri Lanka. In July 2011, as per the Central Bank of Sri Lanka (CBSL) directions, LOLC divested 10% of its stake in LOFC and was listed on the Colombo Stock Exchange (CSE). The LOLC Group is one of the largest business groups in the country, with the parent (LOLC) being among the first leasing company to be established in Sri Lanka. The LOLC group has interests in trading, plantation, leisure, and energy. LOFC offers savings and deposits

in local and foreign currency, extends loans mainly for auto finance and Islamic finance. On March 31, 2022, LOFC was amalgamated with Commercial Leasing & Finance PLC (CLC), where LOFC remains the surviving entity.

On August 24, 2022, the Company announced that it has received approval on August 24, 2022 from the Monetary Board of the Central Bank of Sri Lanka for the amalgamation of the Company (LOLC Finance PLC – LOFC) with LOLC Development Finance PLC subject to complying with requisite regulatory and statutory requirements. The remaining amalgamated entity will be LOLC Finance PLC (LOFC).

Rating history for last three years:

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