SINGER FINANCE (LANKA) PLC Fitch Ratings has assigned
The final rating is the same as the expected rating assigned on
The debentures are to mature in three and five years and carry fixed and floating coupons. SFL plans to use the proceeds to support its loan-book expansion. The debentures are to be listed on the
The senior debentures are rated in line with SFL's National Long-Term Rating and rank equally with the claims of other senior unsecured creditors.
SFL's National Long-Term Rating was affirmed on 12 February and reflects its small domestic franchise relative to more established, higher-rated peers and high risk appetite stemming from its exposure to customer segments that are more susceptible to operating conditions. The rating of SFL's parent, retail company
The rating of the notes will move in tandem with SFL's National Long-Term Rating. We do not think an upgrade of SFL's ratings from an improvement in its standalone strength is probable, as we expect its franchise to remain significantly weaker than that of its more established, higher-rated peers. The more likely driver of an upgrade of SFL's rating would be an increase in its strategic importance to its parent, Singer.
A prolonged deterioration in SFL's Standalone Credit Profile relative to that of similarly rated peers, through a decline in asset quality and an increase in leverage, could lead to an Outlook change. However, it would not result in a downgrade of SFL's rating, unless our assessment of parental support was also to change from the parent's National Long-Term Rating.
© Pakistan Press International, source
