Fitch upgrades and withdraws rating of Lanka’s People’s Finance

Fitch Ratings has upgraded People's Finance PLC's (PF) National Long-Term Rating to ‘AA-(lka)’ from ‘A(lka)’, simultaneously removed it off Rating Watch Positive and withdrawn the rating as the company no longer exists.

The action follows the 5 April public announcement that PF has merged with People's Leasing and Finance Company PLC (PLC, B+/AA-(lka)/Stable).

The upgrade of PF's rating prior to withdrawal to the same level as PLC's National Long-Term Rating of ‘AA-(lka)’ reflects the fact that after the merger PF's creditors have been combined with those of the surviving entity, and are therefore now exposed to the same credit risk as PLC's creditors.