First Capital Holdings gets A-credit rating upgrade

Lanka Ratings Agency has upgraded the national long-term and short-term Corporate Credit Rating of First Capital Holdings PLC to A- /P2 from BBB+/P2. The upgraded rating is attributed to the continued improvement in the company’s financial performance and ability to withstand the volatility in the market conditions. The Group’s market capitalisation currently stands close to six billion, with revenues continuing to demonstrate an uptrend propelled by its primary income generator, First Capital Treasuries Limited (FCT), a leading non-bank primary dealer in Sri Lanka. First Capital Holding PLC received this elevation in corporate credit ratings after its previous rating in July 2013.
Accordingly, the long term issue rating of the company’s Rs. 500 million listed, unsecured, senior debenture (2014/2019) has also been upgraded from BBB+ to A- by Lanka Ratings Agency, with the long term rating showing a stable outlook. Simultaneously, the short-term issue rating of First Capital Holdings PLC’s Rs. 1 billion, Unsecured Commercial Paper (2014/2015) has been reaffirmed at P2.
“This upgrade reflects a successful execution of strategy and a judicious combination of professional teamwork, sustainable financial thinking, risk management and a balanced business mix. We are gratified that Lanka Ratings Agency has recognised our improvement and continued efforts over the years,” said First Capital Holdings PLC Managing Director Manjula Mathews.
She added that the company remains committed to augmenting its level of services by increasing its focus on corporate advisory and the broader investment banking services business in its journey towards achieving its vision of becoming Sri Lanka’s leading investment bank.
First Capital Holdings PLC is backed by over 30 years’ experience in providing investment banking solutions. Stringent corporate governance practices, a high level of client service and professional financial expertise underscores all aspects of the company’s activities across its business portfolio.
First Capital Holdings PLC, an entity listed on the Colombo Stock Exchange, is the holding company of the First Capital Group offering a full range of investment banking products and services, through subsidiaries operating in Debt & Equity markets including First Capital Treasuries, a Primary Dealer licensed by the Central Bank of Sri Lanka, First Capital Asset Management, an Investment Manager licensed by the Securities & Exchange Commission of Sri Lanka which also manages several dedicated fixed income Unit Trusts, First Capital Equities a licensed Stockbroker and Member of the Colombo Stock Exchange, First Capital Markets, a licensed Margin Provider and First Capital Limited, a structuring and placement agent for debt and equity, and provider of corporate finance and advisory services.
For nearly 30 years, the First Capital Group has been a leading non-bank financial institution in Sri Lanka. A pioneer Primary Dealer in government securities, First Capital has steadily grown to become a leader in this field, buoyed by a loyal and continuously growing customer base. The company operates in Colombo and several major cities in Sri Lanka.
First Capital Holdings PLC is currently rated A- by Lanka Rating Agency Limited.
Lanka Rating Agency (‘LRA’), former RAM Rating Lanka’s, technical partner is CRISIL India (‘CRISIL’). CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL is India’s leading ratings agency and is also the foremost provider of high-end research to the world’s largest banks and leading corporations. CRISIL’s majority shareholder is Standard and Poor’s (‘S&P’). S&P, a part of McGraw Hill Financial (formerly The McGraw – Hill Companies) (NYSE:MHFI), is the world’s foremost provider of credit ratings.