Fitch revises Abans Finance to “A(lka)” | Daily News

Fitch revises Abans Finance to “A(lka)”

Fitch Ratings has revised the national long-term rating of Abans Finance PLC (AFP), a member of the Abans Group, from “BB+(lka)” to “A(lka)” following a revision of the National long term rating of the parent company, Abans PLC, from ‘BBB+ (lka)’ to ‘AA (lka)’.

AFP recorded a strong performance for the first half of FY20 / 21 amidst the challenging economic landscape due to the COVID-19 pandemic. The Company has recorded a net profit after tax of Rs. 63.6 million for the 1H of FY 20 / 21 period ended 31st September 2020, compared to Rs. 27.7 million recorded in the corresponding year, achieving a YoY growth of 130%.

The company adhered to the CBSL debt moratorium guidelines and took a day one loss on the first moratorium. The performance of the company is attributable to the re-strategized activity which includes; timely replacement of new facilities with a time-tested asset-backed new portfolio, technology-driven recovery and lending practices. The lending and recovery practices proved more resilient during the COVID-19 period and improved cost efficiencies across the organization.

Further diversification of the lending portfolio into various sectors and geographic areas together with strategies used in managing the concentration risk has further stabilized the quality of the lending portfolio and facilitated in maintaining a healthy liquidity position.

Despite the economic turbulence and the COVID-19 pandemic, the Company is in line to record a comparatively higher sustainable profit in the 2020/2021 financial year.