Growth Spurt

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

Nov 13, 2012 (LBO) - Fitch Ratings has confirmed a 'BB+(lka)' rating of Trade Finance and Investment Plc (TFI), with a stable outlook, saying recent fast credit growth needs strong monitoring. "The rating factors in TFI's strong capitalisation and profitability metrics for a small-sized registered finance company (RFC)," the agency said.

"The rating is however, constrained by its limited lending diversity, narrow deposit base and small franchise."

TFI has grown its loans 82.9 percent in the 2012 financial year following a surge in motor car imports.

"Fitch expects that TFI's unseasoned loan book is likely to face asset quality stresses unless strong monitoring and control measures are maintained on loan portfolio," the agency said.

The firm had an above average equity base and pre-tax return on assets adjusted for non-recurring items at an annualised 13.8 percent in the six months to September was also above the 6.6 percent average for similarly rated firms.

The full statement is reproduced below:

Fitch Affirms Trade Finance and Investments PLC at 'BB+(lka)'

13 Nov 2012 5:04 AM (EST) Fitch Ratings-Colombo/Mumbai/Singapore-13 November 2012:

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