Lanka Rating Agency
03-Sep-24
Analyst
Nilum Liyana Arachchi
nilum@lra.com.lk
+94 114 500099
www.lra.com.lk
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Non-Banking Finance Companies Rating | Jun-22
Related Research
- Sector Study | Leasing & Finance Companies | Aug-23
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to LRA
Lanka Rating Withdraws Instrument Rating of LOLC Finance PLC - LKR 06bn Asset Securitization
| Rating Type | Debt Instrument | |
|
Current (03-Sep-24) |
Previous (16-Mar-23) |
|
| Action | Withdraw | Initial |
| Long Term | - | A+ |
| Outlook | Stable | |
| Rating Watch | - | - |
Subsequent to the management's decision to discontinue the rating of asset securitization, Lanka Rating withdraws the instrument rating of LOLC Finance PLC - LKR 06bn Asset Securitization with immediate effect.
.
About
the Entity
LOLC Finance PLC (LOFC or the Company) is registered as a Finance Company under the provisions of the Finance Business Act No. 42 of 2011. It is also registered under the Securities and Exchange Commission as a Market Intermediary to perform the functions of a Margin Provider. The largest shareholder of the Company is LOLC Ceylon Holdings PLC with an ownership of 90.96%. The Board of Directors has seven members, out of which six are Non-Executive Directors. The Chief Executive Officer, Mr. D M D K Thilakaratne has over 25 years of experience and is supported by a well-qualified and experienced management team.
About
the Instrument
The LKR 6bn asset securitization is a consolidation of three asset securitizations. It was issued in tranches and the trustees for the issue were, namely, i) NSB Fund Management Company Limited (“NSBFM”) ii) Hatton National Bank (“HNB”) iii) People’s Bank (“PB”). The HNB, NSBFM and PB asset securitizations carry an interest rate of AWPLR + 250 bps, 8.75% and 10.75% respectively. The asset securitization is secured by mortgaging rental receivables of leases, hire purchase and vehicle flexi loans. HNB and NSBFM asset securitizations matured in March 2024 and PB will mature in December 2024. As at June 30, 2024, the outstanding amount of this debt instrument stands at LKR 245mn.