Jan 19, 2013 (LBO) - Sri Lanka's Vallibel Finance Ltd has been rated 'BB+' with a stable outlook by RAM Ratings Lanka.
"Vallibel’s ratings are moderated by the increasing trend in new non-performing loans (“NPLs”) in recent times, coupled with its unseasoned loan portfolio, given aggressive loan Growth," RAM Ratings Lanka said.
"The ratings are, however, upheld by the Company’s average asset quality, performance and capitalisation levels."
The company’s gross NPL ratio had improved from 4.26 percent at end March 2010 to 1.81 percent by end March 2012, but had deteriorated to 2.67 percent by the end of the first half of current financial year.
Sri Lanka ran into a balance of payments crisis from mid 2011 due to excessive credit taken by state enterprises which were accommodated with central bank credit.
In addition to rising interest rates, the currency also weakened, pushing inflation up and real incomes of people down.