Fitch Ratings has revised the national long-term rating of Abans Finance PLC (AFP), a member of the Abans Group, from “BB+(lka)” to “A(lka)” following a revision of the National long term rating of the parent company, Abans PLC, from ‘BBB+ (lka)’ to ‘AA (lka)’.
AFPrecorded a strong performance for the first half of FY20 / 21 amidst the challenging economic landscape due tothe COVID-19 pandemic. The Companyhas recorded a net profit after tax of Rs. 63.6 million for the 1H of FY 20 / 21 period ended 31st September 2020, compared to Rs. 27.7 million recorded in the corresponding year, achieving a YoY growth of 130%.
Despite being adhered to CBSL debt moratorium guidelines and taking a day one loss on first moratorium, theaforesaid performance is attributable to the re-strategized activities which includes, timely replacement of new facilities with a time-tested asset backed new portfolio, company’s technology driven recovery and lending practices, which were more resilient during the COVID-19 period,and improved cost efficiencies implementedacross the organization.
Further diversification of the lending portfolio into various sectors and geographic areas together with strategies used in managing the concentration risk has further stabilized the quality of the lending portfolio and facilitated in maintaining a healthy liquidity position.