The subordinated debentures, in terms of priority, will rank below deposits and all senior debt obligations, but above ordinary and preference shares.
Consequently, and in accordance with the agency's criteria, it said the rating assigned for the subordinated debentures is one notch lower than CF's implied senior debt rating of 'A+(lka)'.
"CF's ratings factor in its relatively good financial profile in the Registered Finance Company (RFC) sector in Sri Lanka," the statement said.
"The ratings also take into account CF's lack of product and funding diversity in relation to banks, an inherent limitation of the RFC business model."
Fitch said an upgrade of CF's rating depends on increased diversity of its funding sources and access to