"The ratings are, however, upheld by the Company’s average asset quality, performance and capitalisation levels."
The company’s gross NPL ratio had improved from 4.26 percent at end March 2010 to 1.81 percent by end March 2012, but had deteriorated to 2.67 percent by the end of the first half of current financial year.
Sri Lanka ran into a balance of payments crisis from mid 2011 due to excessive credit taken by state enterprises which were accommodated with central bank credit.
In addition to rising interest rates, the currency also weakened, pushing inflation up and real incomes of people down.
The full statement is reproduced below:-
RAM Ratings Lanka assigns initial ratings of BB+/NP with a stable outlook to Vallibel Finance PLC