Alliance Finance Company PLC (AFC) has been able to preserve its investment grade credit rating of BBB- from ICRA Lanka Limited (ICRA) despite the extremely challenging macroeconomic conditions. AFC is the third oldest finance company in Sri Lanka with a heritage built with the trust of four generations of loyal customers spanning a time period of over six decades.
ICRA reaffirmed the credit rating of BBB- of AFC in its latest rating review published on 31st October 2018. However, the rating outlook was revised to “negative” given the increase in non-performing loans due to adverse economic conditions and erratic weather patterns in the recent past which has resulted in the banking and finance sector experiencing a steep increase in non-performing loans in 2018 when compared to 2017.
AFC has one of the most diversified funding sources amongst finance companies in the country with equity, deposits, bank borrowings and foreign funding from global development financial institutions with a significantly lower dependence on public deposits.
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