ICRA Lanka Limited has revised the Issuer rating assigned to Construction Guarantee Fund (CGF/the Fund) to [SL] A (pronounced S L A) with stable outlook from [SL] A- (pronounced S L A minus) with stable outlook.
The rating revision primarily factors in the Government of Sri Lanka (GOSL)’s recognition of the Fund as a long standing key player in the construction industry in Sri Lanka. This was further witnessed by the Fund’s recent partnership with the Road Development Authority (RDA), providing its the services/guarantees on behalf all the construction contractors under the “Saubagya Dakma Programme”, which targets the construction of 100,000 Km-rural roadnetworks around the country.
This programme has not only helped the Fund to increase its operational scope during CY2020 but also to envisage its due recognition as a Fund Manager in the local construction industry with two decades of experience.
Moreover, ICRA Lanka takes comfort of the ownership and the sovereign support to the Fund. ICRA Lanka also notes the Fund’s unique operational model as a non-profit service organization in Sri Lanka, its stringent underwriting standards, and its self-sustaining operational structure that requires minimal support from the GOSL.
