Financial Times - Central Finance highest rated finance company in Sri Lanka

Central Finance highest rated finance company in Sri Lanka

Central Finance (CF) said last week that it is the only finance company in Sri Lanka to be given a “A+(lka)” by Fitch Ratings Lanka Limited.

The A+ (lka) rating ranks Central Finance Company at the top of the ranking already offered to institutions in the banking and financial service sector, the company said.

Ratings are now compulsory for both banks and finance companies.

Central Finance said some of the key elements highlighted in the ratings are:

* Strong Capital position with healthy Capital Ratios which are above those of most peers.

*Good asset quality.

*High profitability – Returns of Assets (ROA) of 5%.

*A provision cover which gives a loan loss coverage ratio well above the peers.

It said CF’s rating reflects its long operating history, strong financial profile and well established customer franchise in its core business segments with a network of 36 offices island-wide, whilst the head office is situated in Kandy and the city office in Colombo.

The company’s core activity is the provision of motor vehicle finance but has expanded into the importation and sale of vehicles to complement its vehicle financing business it also undertakes real estate development on a selective basis. Going forward, the company intends to strengthen its presence in the western province to tap the high margin segments of the market and grow its vehicle sales operation.

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