Fitch rates Ceylon Income Fund

Fitch Ratings has assigned the Ceylon Income Fund a 'A-(lka)' National Fund Credit Rating.

This is the first fund rating assigned by an international rating agency in Sri Lanka. The fund primarily invests in corporate debt instruments and is managed by Ceylon Asset Management (CAM).

The 'A-(lka)' National Fund Credit Rating is driven by the fund's weighted average rating factor (WARF) and rating distribution while reflecting Fitch's opinion that the fund is moderately concentrated.

Fitch has rated the fund on the basis of its understanding that the majority of investors in the fund are not exposed to mark-to-market risk.

Instead, Fitch understands that the vast majority of investors are duration matched, i.e. investors enter the fund with a specified maturity which is matched to the maturity of securities in the fund.