Fitch assigns Abans proposed debentures AA- amid challenging environment

Friday, 29 March 2024 00:00 - - {{hitsCtrl.values.hits}}

In a recent development, Fitch Ratings has assigned a ‘AA- (lka)’ National Long-Term Rating to Sri Lanka-based consumer electronics retailer Abans PLC’s (AA-(lka)/Stable) proposed senior unsecured redeemable debentures.

This rating reflects Abans strong financial position and underscores Abans’ robust position in the domestic market for consumer electronics, underpinned by its extensive distribution network and strong portfolio of established brands. Notably, this rating places Abans ahead of its competitors, highlighting its resilience and stability in the industry.

Abans PLC, the flagship entity of the Abans Group, stands as a leading retail brand in Sri Lanka, boasting a diverse brand portfolio and serving as the exclusive agent for numerous globally renowned electronic, home appliance, IT, mobile, and lifestyle brands within the country. The company’s reach is further amplified by its expansive network of over 400 showrooms across the island, complemented by more than 15 regional after-sales service centres, ensuring comprehensive customer support and satisfaction.

Abans PLC stands out as a customer-centric company, placing utmost importance on understanding and fulfilling the needs and wants of its customers.

By prioritising customer satisfaction, Abans PLC goes beyond traditional approaches, actively engaging with its clientele to identify their unique requirements. This customer-focused strategy drives the company to consistently innovate, offering creative solutions and products that resonate with customers and enhance their lives. Through this approach, Abans PLC not only meets but exceeds customer expectations, establishing long-lasting relationships built on trust and value.

The recognition bestowed upon Abans PLC extends beyond its operational prowess, as evidenced by its certification from Great Place to Work and its accolades such as being named Sri Lanka’s Most Loved Retail Brand in the LMD Brands Annual survey. Moreover, the company’s digital presence has not gone unnoticed, with consistent acknowledgments as one of the Most Visible Brands Online, reflecting its adeptness in navigating the digital landscape.

Established in 1968 by Aban Pestonjee as a modest corner store, the Abans Group has since evolved into a diversified conglomerate encompassing over 30 independent companies engaged in various trading and manufacturing activities, offering a wide range of integrated services to its clientele. The company’s strategic decision to broaden its shareholdings culminated in its listing as a publicly quoted company on the Colombo Stock Exchange in 2014, marking a significant milestone in its corporate journey.

Speaking about the company’s ethos and commitment, a representative of Abans Group, emphasised, “For more than 50 years, the company has always been aligned to the needs of the country. During these trying times, it is important for all to work together and help one another. Abans Group, together with our dedicated employees, are glad to serve our community.

Fitch’s positive rating assignment to Abans PLC underscores its market leadership, operational excellence, and financial strength, positioning it as a frontrunner in Sri Lanka’s consumer electronics sector and setting a benchmark for industry peers to emulate.