AMW Capital Leasing and Finance BBB+(lka) rating confirmd: Fitch
Jul 13, 2019 18:38 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Fitch Ratings Lanka said that it has affirmed AMW Capital Leasing and Finance Plc at BBB+(lka) with a stable outlook due to expected support from its parent.
Associated Motorways Private Limited (AMW), a large importer of motor vehicles in Sri Lanka, owns 90 percent of AMW Capital Leasing (AMWCL).
"Fitch sees the synergies between the two companies as high, since almost half of AMWCL's advances comprise facilities that are provided to clients who purchase AMW products," the ratings agency said.
Fitch said that the AMW brand, and the reputational risk for the parent if AMWCL defaults are reasons for maintaining the same rating.
"AMWCL's rating is sensitive to changes in Fitch's assessment of its parent's ability and propensity to provide support, none of which Fitch expects to change significantly in the short to medium term."
"AMW set up AMWCL in 2006 with the objective of supporting its core business."
Nine of AMWCL's 22 branches are situated in AMW showrooms. (Colombo/Jul13/2019)