Lanka Rating off to a flying start

Lanka Rating Agency, a unit of Malayasia's Rating Agency Malaysia, has secured 15 mandates in its first few months of operation, officials said Thursday. Lanka Rating Agency, a unit of Malayasia's Rating Agency Malaysia, has secured 15 mandates in its first few months of operation, officials said Thursday. The island's second rating agency says credit ratings of 14 finance companies and one local bank will be out within the next two months.

"There was a slight delay in getting audited accounts of some finance companies … but we hope to issue the first ratings by end November," says Priya Thamotheram, Chief Executive Lanka Rating.

Sri Lankan banks, finance and leasing companies are knocking on the doors of Fitch Ratings Lanka and LRA, as credit ratings become mandatory from January 1, 2006.

But Thamotheram says companies are still shy to share information, though they have signed up for a credit rating.

RAM, which has affiliations to Standard & Poor's, bought out the Ceylinco Consolidated Group's 51 percent stake in LRA for Rs. 15.6 million early this year.

- LBO Newsdesk: lboemail@vanguardlk.com