Abans Auto assigned [SL]BBB rating

ICRA Lanka Limited has assigned an Issuer rating of [SL]BBB (pronounced SL triple B) for Abans Auto (Pvt) Limited (AAPL). The outlook on the rating is stable.

The assigned rating primarily factors in the strong operational expertise and financial flexibility that AAPL derives from being a part of the Abans Group.

The Group's deep distribution reach coupled with AAPL's exclusive dealership arrangement with Hero MotoCorp Limited (Hero) - India's leading two-wheeler (2W) manufacturer, are also expected to act as catalysts in propelling the company's growth in the Sri Lankan 2W market.

In this context, the robust demand outlook for the Sri Lankan 2W industry on the back of broadbased economic growth, soft interest rate regime and favorable demographics, is a key credit positive.

While assigning the ratings, ICRA Lanka also takes cognizance of the sizeable gains in market share achieved by the Company (within two years of operations) on the back of aggressive marketing efforts undertaken by AAPL and operational and technical support provided by Hero towards setting up of after sales services and spare parts distribution infrastructure.