ICRA Lanka Limited has assigned the Issuer rating of [SL]A+ (pronounced SL A Plus) with Stable outlook for Metrocorp (Private) Limited.
ICRA Lanka has taken a consolidated view on Metrocorp (Pvt) Ltd and its subsidiaries as a conglomerate, given the significant operational and financial linkages among them.
The rating primarily factors in Metrocorp’s position as a conglomerate in Sri Lanka with the market leaderships in their core business sectors such as mini hydro power, agro industry, water management and leisure sectors. ICRA Lanka also considers Metrocorp’s promoters, experienced management team, the Company’s professional setup and its good corporate governance practices as positives, which have complemented its business strengths. Cumulatively, these factors have enabled the Group to record healthy financial performance in the past, largely through prudent-organic growth.
Metrocorp as the investment holding-company is not totally dependent on dividend upstreaming from its subsidiaries owing to healthy investment incomes from its liquid investment portfolio. Nevertheless, over the past several years, Metrocorp has up-streamed significant amount of dividends from its Power sector and therefore, Metrocorp at the standalone level currently has a strong capitalization metric with zero debt facilities.
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