ICRA Lanka Withdraws the Ratings of Merchant Bank of Sri Lanka & Finance PLC
|Instrument*||Rated Amount (LKR Mn)||Rating Action|
|Issuer Rating||N/A||[SL]BBB+ with Stable Outlook; Withdrawn|
|Subordinated Unsecured Redeemable Debenture Programme||1,000||[SL]BBB with Stable Outlook; Withdrawn|
ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] BBB+ (pronounced SL Triple B plus) with Stable outlook assigned to Merchant Bank of Sri Lanka & Finance PLC (“MBSL”/ “the Company”). ICRA Lanka has also withdrawn the issue rating of [SL] BBB (pronounced as S L Triple B) with Stable outlook on the LKR 1,000 Mn Subordinated, Unsecured, Redeemable Debenture Programme of MBSL. The withdrawal is as a result of termination of rating agreement(s) entered into by MBSL 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:
MBSL was established in 1982 as a merchant bank. The Company had two subsidiaries, MBSL Savings Bank Ltd (MSB, Licensed Specialised Bank) and MBSL Insurance Company (Composite Insurer) and two associate companies, Lanka Securities (Pvt) Ltd (registered stockbroker) and MCSL Financial Services Ltd (a licensed finance company). Pursuant to the Master Plan on Consolidation of the Financial Sector proposed by the Central Bank of Sri Lanka (CBSL), in January 2015, MBSL Savings Bank Limited (MSB) and MCSL Financial Services Limited (MCSL) were merged with MBSL. MBSL offers leasing & HP, long and short-term loans, microfinance and gold loans to its clients. The Company had 48 branches as on December 2021.
Rating history for last three years:
Subsidiary of ICRA Limited
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