Fitch revises Bimputh Finance to negative

Fitch Ratings said it revised the outlook on the national long-term rating of Bimputh Finance plc to negative from stable.

At the same time, the agency affirmed the national long-term rating at BB(lka).

“The outlook revision reflects the finance company's high capital-impairment risk arising from declining pre-impairment operating profit buffers amid a weakening in asset quality, reducing its capacity to absorb credit-cost shocks,” Fitch said in a news release.

“The revision also captures potential pressure on Bimputh's financial profile from increasing exposure to the non-microfinance business as the company is still developing risk controls in this segment.”

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