LRA assigns rating of A- to WealthTrust Securities

The Lanka Rating Agency has assigned WealthTrust Securities Limited with an Initial Entity Rating of (A-) with a stable outlook. WealthTrust Securities Limited (WTSL) commenced operation in the year 2011 as an authorised standalone Primary Dealer (PD) appointed by the Central Bank of Sri Lanka and has demonstrated remarkable financial resilience and growth over the years. As a PD, WTSL deals in Government securities, including treasury bills and bonds, in both primary and secondary markets and adeptly navigates market risks associated with interest rate fluctuations.

With a proven track record in the PD sector, the company’s recent rating underscores its robust capitalisation, significant increase in profitability and profit retention along with a prudent risk management framework. Additionally, WTSL operates as a licensed stock dealer (debt) and stockbroker (debt) under the Securities and Exchange Commission of Sri Lanka. The company recorded an impressive Capital Adequacy Ratio (CAR) of 43.01% for FY24, significantly exceeding the statutory requirement of 10%. By investing 90% of its assets in Government securities, WTSL minimises credit risk, though it remains exposed to interest rate fluctuations.

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