ECONOMYNEXT – WealthTrust Securities, a primary dealer in government securities appointed by the central bank said it was rated ‘A-‘ with a ‘stable’ outlook by Lanka Ratings Agency.
Started in 2011, the firm also operates as a licensed broker and dealer in debt under the Securities and Exchange Commission of Sri Lanka.
WealthTrust had a proven track record, and the rating indicated its robust capitalization, significant increase in profitability and profit retention along with a prudent risk management framework.
The company a Capital Adequacy Ratio (CAR) of 43.01 percent for the Financial Year 2024, far exceeding statutory requirement of 10 percent.
By investing 90 percent of its assets in Government securities, WealthTrust minimizes credit risk, though it remains exposed to interest rate fluctuations.
The company’s strategy includes rebalancing its portfolio between short-term and long-term Government securities to mitigate these risks effectively.
WTSL’s said its management team had extensive experience and strong qualifications, ensuring governance and strategic direction.
The firm had shown strong recent performance with substantial gains from high yielding bonds as interest rates fell.
The company is expecting to sustain its performance with lower profitability.
“The company’s future success hinges on its active trading strategies on its portfolio by capitalizing on interest rate movements, maintaining and strengthening its market position as a non-bank PD, while preserving its capital cushion and implementing effective portfolio rebalancing and governance practices,” the statement said.