18 March 2024 12:00 am Views - 129
Fitch Ratings announced last week it has assigned Siyapatha Finance PLC’s proposed Sri Lankan rupee-denominated senior unsecured debentures of up to Rs.4 billion an expected National Long-Term Rating of ‘BBB+(EXP)(lka)’.
The proposed debentures will mature in five years and will be listed on the Colombo Stock Exchange. The company plans to use the proceeds to support its loan book expansion.
The final rating is subject to the receipt of final documentation conforming to information already received.
The senior unsecured debentures are rated at the same level as Siyapatha’s National Long-Term Rating in accordance with Fitch’s criteria. This is because the issue ranks equally with the claims of the company’s other senior unsecured creditors, Fitch said.
Fitch affirmed Siyapatha’s National Long-Term Rating at ‘BBB+(lka)’ with a Stable Outlook and removed it from Rating Watch Negative on October 12, 2023.
Siyapatha’s rating reflects Fitch’s expectation that parent Sampath Bank PLC (A(lka)/Stable) would provide extraordinary support to its 100 percent-owned subsidiary, if needed.
Siyapatha is rated two notches below its parent because of its limited role in the group’s core business. The rating also captures Siyapatha’s limited operational and management integration with its parent.