Fitch withdraws rating on Ceylon Income Fund
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Fitch Ratings has withdrawn the ratings on Ceylon Income Fund’s National Fund which was “Credit Quality Rating of ‘A (lka)’.”
In an announcement on Monday, the agency said that there is no National Volatility Rating assigned to the fund, which is managed by Ceylon Asset Management (CAM).
“Following the Securities and Exchange Commission of Sri Lanka not renewing the licence of Lanka Rating Agency (LRA), in July 2015 Fitch placed the fund on Rating Watch Negative,” the statement said,
It said the proportion of the fund’s assets that used to be rated by LRA was 32 per cent at 9 September 2015. Fitch said it has withdrawn the rating due to insufficient information as assets previously rated by LRA are no longer monitored. Accordingly, Fitch will no longer provide ratings for Ceylon Income Fund. The fund’s Weighted Average Rating Factor was previously consistent with a National Fund Credit Quality Rating in the ‘A(lka)’ category. The fund primarily invests in corporate debt instruments. Fitch continues to rate the Ceylon Dollar Bond Fund (BB-/V5), which is managed by CAM.