Nov 26, 2014 (LBO) – Sri Lanka’s Fitch Ratings has assigned Siyapatha Finance proposed subordinated redeemable debentures of up to one billion rupees a final national long term rating of ‘A-(lka)’.
The full statement is reproduced below:
Fitch Rates Siyapatha Finance’s Subordinated Debt Final ‘A-(lka)’
Fitch Ratings-Colombo/Taipei-26 November 2014: Fitch Ratings Lanka has assigned Siyapatha Finance Ltd’s (SLFL; A(lka)/Stable) proposed subordinated redeemable debentures of up to LKR1bn a final National Long-Term Rating of ‘A-(lka)’.
The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on 2 October 2014.
The proposed debentures will have a five-year tenor with bullet principal repayment at maturity. Coupon payments will be made annually at 8.90%. The debentures are to be listed on the Colombo Stock Exchange. SLFL expects to use the proceeds to strengthen its regulatory Tier 2 capital and to reduce maturity mismatches between assets and liabilities.
KEY RATING DRIVERS
The proposed debentures are rated one notched below SLFL’s Nati