Fitch rates Singer Finance (Lanka) notes BBB(lka)

Fitch Ratings said it assigned an expected national long-term rating of BBB(lka) to Singer Finance (Lanka) plc’s proposed listed senior secured debentures of up to 1.5 billion in Sri Lankan rupee.

The proposed issuance is expected to have a tenor of five years with a fixed-rate coupon, Fitch said.

The proceeds will be used to fund lending growth, lengthen maturities of its liabilities and reduce structural maturity mismatches, the agency said.

The issue was rated at the same level as the company’s national long-term rating, Fitch said.

The ratings reflect a view that support would be forthcoming from the parent company, Singer (Sri Lanka) plc based on its strategic importance to its parent, the agency said.

The company’s national long-term rating is underpinned by its standalone credit profile, which reflects better capitalization levels, modest profitability and satisfactory asset-quality when compared with similarly rated domestic peers, Fitch said.

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