ICRA Lanka Archives

March 30, 2022

UB Finance Co Ltd, one of Sri Lanka’s premier licensed finance companies (LFCs) and a subsidiary of Union Bank PLC, has announced that ICRA Lanka has reaffirmed its Issuer Rating of [SL]BB, while revising its outlook upwards from “Stable” to “Positive”. This gives UB Finance Co Ltd an Issuer Rating of [SL]BB (Positive), a development that comes as the Company prepares to embark on an aggressive plan for future growth and expansion, having recently received a capital infusion of LKR 1.98 billion from its parent company, Union Bank PLC, making it one of the highest capitalized LFCs in Sri Lanka. ICRA Lanka is a premier credit rating agency in Sri Lanka and a subsidiary of global credit rating giant, Moody’s Investors Service.

Commenting on the positive revision to the Company’s Issuer Rating, Mr Asanka Udugama, DGM Finance said, “The upward revision of our Issuer Rating from [SL]BB (Stable) to [SL]BB (Positive) is very welcome as we stand at the threshold of an ambitious journey to expand our operations. Through our expansion strategy, we intend to drive new customer acquisition and invite increased public participation, which will help us to serve our customers better and continue to help Sri Lankans achieve their goals and objectives. Backed by a well-designed marketing strategy, next-level customer service and various other public engagement initiatives, UB Finance is set to emerge as a force to be reckoned with in the near to medium term in Sri Lanka’s financial services sector, steadfastly delivering on our commitment to providing a unique economic and social value proposition to all Sri Lankans.”

UB Finance Co Ltd is a finance company licensed by the Central Bank of Sri Lanka providing a range of financial products and services to customers, including fixed deposits, savings, leasing, loans, mortgages and gold loans solutions. UB Finance is rated [SL]BB with a Stable Outlook by ICRA, and operates on the basis of integrity and customer empowerment, creating new opportunities for all Sri Lankans.

August 4, 2021

August 3^rd, 2021: Pioneering private healthcare provider Nawaloka Hospitals PLC (CSE: NHL) recently had its investment grade credit rating of [SL] BBB- reaffirmed with a revised outlook to Stable, by ICRA Lanka Limited.

The reaffirmed rating is in recognition of the remarkable progress achieved by Nawaloka Hospitals during the recent past by implementing a strong, sustainable business model which has enabled it to offer diversified operational specialities through high-end, value-added medical services. The rating has also factored in the strong brand name and exceptional operational track record of Nawaloka Hospitals, as demonstrated by the healthy market share enjoyed by the premier hospital chain in Sri Lanka’s competitive private healthcare industry.

“During the past year, we were met with an incredibly volatile and challenging business environment due to restrictions imposed to curb the spread of the COVID-19′ virus. Therefore, we were quick to adapt and innovate to keep pace and meet the rapidly evolving needs of the public. The contribution and dedication of the brave and passionate team at Nawaloka Hospitals was pivotal to this significant improvement in performance. As the first private hospital in Sri Lanka, we remain steadfast to support people from all walks of life who seek us out day after day, for our diverse and easily accessible service portfolio, indelible reputation, and strong commitment to continuously deliver world-class healthcare in a safe and secure environment,” remarked Nawaloka Hospitals Deputy Chairman Harshith Dharmadasa.

Commencing operations in 1985 as the first private sector hospital in Sri Lanka, the Nawaloka group has over the years established a strong brand name in the Sri Lankan healthcare industry. It is one of the largest hospital chains in Sri Lanka with a total capacity of 365 beds in Colombo and Negombo hospitals, further strengthened by its island wide network of labs.

The hospital chain houses world class facilities in strategic locales across the island to enable Sri Lankans everywhere to access the expertise of a team of reputed consultants and specialists, and supporting medical staff. In 2021, Nawaloka commenced the construction of an extension building to the Negombo regional hospital, further enabling the hospital chain to strengthen its regional presence. The Nawaloka Hospitals Specialist Center also operates 14 unique and diverse treatment centres, including a bone marrow transplant unit, post-COVID care center, kidney centre, neuro centre and heart centre.

Starting January 2021, Nawaloka Hospitals also introduced four world class, fully-geared Intermediary Care Centres with ICU facilities, by partnering with several star class hotels, to offer a total capacity of 500 beds for the treatment of COVID-19 patients. The hospital also offers in-house treatment for COVID-19 patients in one of their isolated wings. Additionally, through the Nawaloka Nursing School, the organisation continues to train and produce highly skilled nurses to support hospital operations as well as to bridge the skill gap experienced by the healthcare sector at this time.

January 4, 2021

ACL Cables PLC, the No.1 cable company in Sri Lanka has once again showcased its strong financial position and brand equity achieving (SL) A+ stable credit rating for the fourth consecutive year according to ICRA Lanka’s recently published rating outlook.

Impressively, ACL Cables became the only cable manufacturer in the local industry to register an A+ credit rating, demonstrating the company’s stability and credit worthiness amidst challenging business environments.

ACL Cables PLC registered revenues of Rs. 18.8 billion as a group for the financial year ended in March 2020. A profit-after-tax of Rs. 1 billion was also recorded as a group. This was a 64% increase in comparison to the previous year.

ICRA Lanka is a fully owned subsidiary of ICRA Limited of India. The ultimate parent company of the international credit rating agency, Moody’s Investors Service, is the indirect majority shareholder of ICRA.

Suren Madanayake, Managing Director ACL Cables PLC said, “We are pleased with the latest credit rating published by ICRA Lanka. Moreover, this is a remarkable achievement since this is the fourth consecutive year for us to post an (SL) A+ credit rating. This proves our corporate and financial strength even amidst challenging and volatile conditions. I believe that this will create further business confidence in ACL Cables amongst our shareholders, customers and all stakeholders. Additionally, this milestone is also noteworthy as we are the only cable company to register such an achievement. I like to take this opportunity to thank everyone who has contributed towards this task and invite them to stay partnered with ACL in years to come, enjoying the success we have achieved together.”

According to ICRA Lanka, ACL Cables as a ‘Company and the Group as a whole have been driven by the rich promoter-experience and the strong and experienced management team in place, which have guided the Company through several business cycles. The Company has a relatively strong corporate structure in place with well-planned management policies and good corporate governance structure. This has ensured the business continuity over the past several decades.’

ACL Cables began operations in 1962 in Kalutara. To-date the company has served the nation for over 58 years with a strong and rich history providing a plethora of innovative products for its consumers.

Ensuring novelty to its product range, ACL was the first in Sri Lanka to introduce Aerial Bundled conductors (ABC), Aluminum conductors, Armoured and unarmoured power cables, control cables etc.

Further, even to-date, ACL is the first and only company in Sri Lanka to produce fire retardant and fire resistant cables as per local and international regulatory guidelines. Recently ACL went on to become the only company in Sri Lanka to receive SLS standardization for fire rated cables. These are marketed under the brand names ACL Fireguard, ACL Firezero and ACL Fire survivor.

In 2014 ACL began manufacturing electrical switches and circuit protection devices, which currently has gained immense customer acceptance in the market.

Today, ACL Cables retains a market share of 70% as a group enjoying a dominant market position in the cable industry as the No.1 cable in Sri Lanka.

October 11, 2017

The issuer rating of SL[A-] with stable outlook was reaffirmed for First Capital Holdings PLC (First Capital) by ICRA Lanka Limited, a subsidiary of ICRA Limited, a group company of Moody’s Investors Service. ICRA Lanka also reaffirmed the issuer rating [SL]A- with stable outlook for First Capital’s standalone primary dealer First Capital Treasuries PLC.

First Capital Holdings PLC is also the holding company for other entities in the financial services space, engaged in making investments and managing its subsidiaries i.e. First Capital Treasuries PLC an authorised Primary Dealer in Government Securities, First Capital Limited involved in structuring and placement of corporate debt and corporate finance advisory services and investments, First Capital Asset Management Limited involved in unit trust and portfolio management; First Capital Markets Limited involved in providing margin trading facilities and dealing and broking of listed debts, First Capital Trustee Services (Pvt) Limited a trustee services provider for corporate debt securities and First Capital Equities (Pvt) Limited engaged in stock broking activities.

However, First Capital Treasuries accounts for 70% of the consolidated assets and 80% of the consolidated net trading income of First Capital for FY2017. The ratings take note of First Capital’s efforts to expand the business and financial performances of the other subsidiaries, which are engaged in corporate debt structuring, corporate finance, asset management, stock broking, extending margin trading facilities and trustee services; however their scale of operations continues to remain moderate. First Capital’s borrowings are largely short term in nature and are used for investment and lending to group entities. The rating factors the First Capital group’s established relationships with banks and financial institutions, providing access to funding. Further, ICRA Lanka expects timely funding support from First Capital Treasuries, considering the liquid nature of its assets.

First Capital, being a holding company derives its income from the dividends from the group entities and income from its investments, which includes interest income and profit from investments. For the FY2017 stand-alone income from investment activities improved (LKR 774 Mn total income in FY2017 vis-a-vis LKR 336 Mn in FY2016), while the share of profit from Subsidiaries increased steeply (LKR 194 Mn in FY2017 vis-à-vis 14 Mn in FY2016).

ICRA Reaffirms UB Finance’s [SL]BB Issuer Rating, Revises Outlook to “Positive”

ICRA Lanka reaffirms Nawaloka Hospitals credit rating of [SL] BBB- with a stable outlook

ACL Cables showcases strong financial position and brand equity achieving (SL) A+ ICRA Lanka credit rating for fourth consecutive year

First Capital’s A- rating reaffirmed by ICRA Lanka