Fitch Rates Sampath Leasing at 'A(lka)'
Fitch Ratings Lanka has assigned Sampath Leasing and Factoring
Limited (SLFL) a 'A(lka)' National Long-Term rating. The outlook is
positive.
The rating reflects Fitch's expectation of continuous support from
SLFL's parent - Sampath Bank PLC (SB, 'AA-(lka)'/Positive, 100%
ownership), given the strong strategic and operational linkages between
the two entities.Six out of SLFL's eight board seats are held by current
or former senior SB officials and directors, including the bank's CEO on
an ex-officio basis.
The board is also advised by SB's current CFO. SB guaranteed or
directly lent nearly all of SLFL's borrowings at end-2011 (FYE11). SLFL
also benefits from business referrals from SB's extensive branch
network,and has a growing number of window offices within the latter's
branches. In 2011, SLFL accounted for 65 percent of SB's consolidated
net lease portfolio growth.
The Positive Outlook on SLFL mirrors SB's rating Outlook, and
indicates that the ratings of SB and SLFL will move in tandem.
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