Fitch Ratings has assigned Singer Finance (Lanka) PLC’s (SFL, A+(lka)/Stable) Sri Lanka rupee-denominated subordinated unsecured debentures a final national long-term rating of ‘A-(lka)’.
The assignment of the final rating follows the receipt of documents conforming to information previously received. The final rating is in line with the expected rating assigned on March 22, 2021.The debentures will total up to Rs 2 billion with a maturity of five years and carry fixed and floating rate coupons. SFL plans to use the proceeds to strengthen its Tier II capital, support its loan-book expansion and for working capital requirements. The debentures are to be listed on the Colombo Stock Exchange.
The subordinated debentures are rated two notches below SFL’s National Long-Term Rating to reflect their subordination to senior unsecured obligations. Fitch’s baseline notching of two notches for loss severity reflects our expectation of poor recovery.
