Fitch confirms ‘AA(lka)’ rating of Dialog Finance

Sep 30, 2019

ECONOMYNEXT – The rating of Sri Lanka’s Dialog Finance Plc, a 98 percent unit owned by telecom operator Dialog Axiata has been confirmed at ‘AA(lka)’ based on support from the parent.

Dialog Finance was bought in September 2017 to push digital financial services in a ‘fintech’ model.

“However, DF has not yet commenced its intended business model and we do not expect the segment to provide a significant contribution to the group’s core business in the medium term,” Fitch Ratings said.

“DF’s business model is likely to focus on digital financial services leveraging on Dialog’s technical
competencies.”

However Dialog is expected to inject cash needed to meet a 2.5 billion rupee capital requirement by 2020, Fitch said.

The full statement is reproduced below.