By The Nation
The rating is enhanced from HKL’s stand-alone rating to reflect the company’s status as a strategically important subsidiary of Bank of Ayudhya PLC (BAY, rated “AAA/Stable” by TRIS Rating), TRIS reported. HKL has received strong business and financial support from BAY.
TRIS said it believed the support is likely to continue as HKL is one of the companies within the solo consolidation group of BAY.
The stand-alone rating reflects HKL’s strong market position as a top-three microfinance deposit-taking institution (MDI) and nationwide branch network in Cambodia, as well as its diverse customer base and prudent risk management systems.
However, the country risk of the kingdom of Cambodia, regulatory risk, and high competition in the microfinance segment constrain the rating, said TRIS.