ICRA Lanka assigns A- rating for Capital Alliance Limited (CAL)

Gihan Hemachandra – Chief Executive Officer, CAL (Capital Alliance Limited)

Sri Lanka’s leading investment banking firm and the preferred partner in financial markets, Capital Alliance Limited (CAL), has been assigned the issuer rating of [SL]A- with stable outlook by ICRA Lanka Limited, subsidiary of ICRA Limited (a group company of Moody’s Investors Service). The rating factors CAL’s position as one of the leading standalone primary dealers in Sri Lanka. Led by a strong and reputed management team, CAL has earned the confidence of a cross-section of corporate and individual investors, who leverage on the company’s in-depth knowledge to gain better returns on their investment.  

Closely regulated by the Central Bank of Sri Lanka (CBSL), the company demonstrates strong financial strength and stability. This is evidenced by its impressive financial performance in the six-month period ending 30th September 2016, recording a Net Income of LKR 485mn and total net assets of LKR 1.55bn. CAL’s portfolio as of September 30, 2016 stood at c.LKR 8.3 Bn vis-à-vis LKR 5.7 Bn on March 31, 2016. The portfolio consisted of treasury bills, bonds and reverse repos which carry no credit risk and are highly liquid assets.

CAL’s impressive performance and financial position has been achieved despite challenging market conditions in which interest rates have been on the up-trend. One of the crucial pillars of the company’s reputation is its advanced, proprietary in-house research unit, which has empowered its businesses with the value of foresight and mapping of future trends, thereby securing clients’ investments. CAL’s team of highly knowledgeable and responsive advisors, proactively monitor capital markets and provide real-time insights to clients, while a state-of-the art electronic trading platform allows clients to manage trades from start to finish at their convenience. The Company’s robust risk, governance and compliance culture boosts client confidence further. 

Commenting on this accolade, Gihan Hemachandra – Chief Executive Officer, CAL, said, “We are elated to have our financial fundamentals affirmed by ICRA Lanka Limited and are glad to note that they have commended the efficacy of our control processes along with the robust IT system, which are commensurate in relation to the risks intrinsic to a primary dealer’s business. CAL was recently awarded the ‘Best Fixed Income Trading House’ by International Finance Awards 2015/16, which reflects our rock-solid financials and international reputation.”