Ratings help to restore market confidence

Ratings can help in a large way to restore market confidence, as it will create investor confidence, said CEO RAM Ratings (Lanka) Ltd Adrian Perera. He said that since a rating is given by a third party it is an independent opinion and therefore the correct information about the company is given to the market as well as to investors.

In the event the company doesn’t want to publish the rating it can be kept as private information and improve the company to get a better rating the following year. He said that financial professionals should initiate to get a rating as this will help a company to face the facts.

At a time when everybody is concerned about risk it is a good time to get a rating. It is better for the corporates to invest now so that they could reap the benefits at the opportune time rather than waiting for the last minute to invest and losing the benefits.Perera said that at present the confidence is low due to the Golden Key and the Sakvithi Fiascos.

There are issues but it will gradually pick up and he was of the view that regulators should be given more power to move in at the right time.

He said that if the deposit run was not stopped by the regulators it would have created a financial turmoil in the country.

Perera said that to improve the market confidence every player should play their role.

He said that accounting bodies should take action against the members who are at fault so that it will be a lesson for others to think twice before placing their signatures on documents.

Perera who assumed duties on June 1 said that they are interested in developing the debt securities market as well as the market for Islamic finance. He said that the company is doing well in Malaysia.