ECONOMYNEXT – Fitch Ratings Lanka said it had withdrawn Ceylon Income Fund’s National Fund Credit Quality Rating of ‘A(lka)’ as assets previously rated by another rating agency banned by the regulator were no longer monitored.
The fund, managed by Ceylon Asset Management (CAM), primarily invests in corporate debt instruments.
A Fitch statement said that after the Securities and Exchange Commission did not renew the licence of Lanka Rating Agency (LRA), in July 2015 Fitch placed the Ceylon Income Fund on Rating Watch Negative.
The proportion of the fund’s assets that used to be rated by LRA was 32 percent at 9 September 2015.
“Fitch has withdrawn the rating due to insufficient information as assets previously rated by LRA are no longer monitored,” it said. “Accordingly, Fitch will no longer provide ratings for Ceylon Income Fund.”
The fund’s Weighted Average Rating Factor was previously consistent with a National Fund Credit Quality Rating in the ‘A(lka)’ category.
Fitch continues to rate the Ceylon Dollar Bond Fund (BB-/V5), which is managed by CAM. (Colombo/September 14 2015)