LANKA RATING WITHDRAWS


the Preliminary Debt Instrument Rating of

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Associated Motor Finance Company PLC – Tier 2 – High-Yield Bonds

14-Jan-26

01

Applicable Criteria

Methodology | Non-Banking Financial Institution Rating | Jul-24

Methodology | Debt Instrument Rating | Aug-24

02

Related Research

Sector Study | Leasing & Finance Companies | Feb-25


03

Analyst

Imran Iqbal | imran@lra.com.lk
+94 114 500099 | www.lra.com.lk

PRESS
RELEASE

DISCLAIMER

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

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Rating Type Debt Instrument
Current
(14-Jan-26) 		Previous
(12-Jun-25)
Action Withdraw Preliminary
Rating BB- BB-
Outlook Stable
Rating Watch - -


Following a Board resolution dated 17 December 2025, Associated Motor Finance Company PLC has decided not to proceed with the proposed Tier 2 high-yield bond issuance. This decision was driven by the recent acquisition of a majority stake in AMF by LB Finance PLC and the proposed amalgamation of the two entities, through which the management expects to deliver operational and financial synergies. In line with the management’s decision to discontinue the proposed instrument, Lanka Rating Agency has withdrawn the Instrument Rating assigned to Associated Motor Finance Company PLC’s Tier 2 High-Yield Bonds with immediate effect.

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About the Entity

Associated Motor Finance Company PLC is a licensed finance company incorporated in Sri Lanka on July 25, 1962, and registered under the Companies Act No. 07 of 2007 & the Monetary Board of the Central Bank of Sri Lanka (CBSL) under the Finance Business Act No. 42 of 2011. AMF was founded by Mr J.P.I. Piyadasa 1962 was listed on the Colombo Stock Exchange (“CSE”) in 2011. In 2021, Arpico Finance Company PLC was amalgamated with and into AMF, with Associated Motor Finance Company PLC remaining as the surviving entity. As of November 25, 2025, the largest shareholder of the Company (LB Finance) holds ~73.1% of the shareholding. The Board has 7 members: 3 Independent Non-Executive Directors, 2 Non-Independent Non-Executive Directors, and 2 Executive Directors. The Chairman is a Non-Independent Non-Executive Director.


About the Instrument

AMF intended to issue a 5-year Tier 2 Listed, Rated, Unsecured, Subordinated, Redeemable High-Yield Bond, with a maximum face value of approximately LKR~1.25bn. The interest was to be determined in accordance with the Finance Business Act Directions No. 01 of 2025 issued by the Central Bank of Sri Lanka, based on the prevailing 364-day Treasury bill weighted average yield plus the applicable regulatory margin.

Lanka Rating Agency Limited

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Kynsey Road, Colombo 00800, Sri Lanka

Tel: +94 11 450 0099

Web: http://lra.com.lk

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