AMF short and long term ratings reaffirmed

RAM Ratings Lanka has reaffirmed Associated Motor Finance Plc’s (AMF) long and short-term financial institution ratings at BB and NP. The outlook on the long-term rating is stable.

The ratings are constrained by the small size of the company and concentration in motorcycle financing, a segment which is vulnerable to changes in the economic climate. The ratings are supported by AMF’s healthy profitability good asset quality and capitalisation. AMF is a family held registered Finance Company incorporated in 1962.

Despite its operating history the company has remained one of the smallest players in the RFC industry, accounting for only 0.35 percent of total industry assets as at end March 2011. AMF does not have a branch network and operates from its head office in Colombo.