Outlook on the long-term rating has been revised to positive from stable.
"The company's ratings are supported by its better-than average asset quality and adequate capital base," RAM Ratings said in a statement.
"However, the ratings are weighed down by high overheads."
Established in 1951, Arpico is the second-oldest registered finance company in the island but has remained small, accounting for less than one percent of the industry’s total assets as at end-March 2010.
The Company’s gross non-performing loans (NPL) ratio improved to 3.08 percent of total loans as at end-August 2010, from 4.83 as at end- March 2009.
Arpico has managed to bring down gross NPLS from high levels seen in 2004 despite a harsh economic climate while others in industry reported worsening bad loans, RAM Ratings said.
"Adequate provisioning has permitted Arpico to record a better net NPL ratio of 1.26 percen