4 October 2021 08:22 am Views - 105
Fitch Ratings has assigned an expected National Long-Term Rating of ‘A(lka)(EXP)’ to Abans Finance PLC’s (A(lka)/Rating Outlook Evolving) proposed Sri Lanka rupee-denominated senior unsecured debentures.
The size of the proposed issuance is up to Rs.1.5 billion, with a maturity in five years.
The company plans to use the proceeds to facilitate future expansion of business activities. The debentures will be listed on the Colombo Stock Exchange. The final rating is contingent upon the receipt of final documentation conforming to information already received.
The expected rating on the proposed senior unsecured debentures is in line with Abans Finance’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.
Abans Finance’s National Long-Term rating is driven by parental support from Abans PLC (AA(lka)/Stable) and was last affirmed at ‘A(lka)’, with Rating Outlook Evolving on August 16, 2021.
The Rating Outlook Evolving reflects the uncertainties around the potential for a disposal of Abans Finance by the Abans group, which affects its assessment of Abans’ propensity to extend extraordinary support to its subsidiary.