Sarvodaya Development Finance rating upgraded to BBB- with Stable Outlook

LANKA Rating Agency Ltd., (LRA) has upgraded the entity rating of Sarvodaya Development Finance PLC (SDF) to BBB- with a Stable Outlook, from BB+ with a Stable Outlook.

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The LRA said SDF is a Licenced Finance Company (LFC) with strong rural outreach, supported by its longstanding affiliation with the Sarvodaya Movement, although its size remains relatively small.

It said the ratings upgrade reflects the company's notable improvement in financial performance, strengthened capital position, and continued prudence in asset quality management, supported by its growing footprint in the Micro, Small and Medium Enterprise (MSME), leasing, and gold loan segments.