Dec 16, 2009 (LBO) – Fitch Ratings Lanka said it has assigned an ‘A-(lka)’ National Long-term rating to the Sri Lanka unit of Singer’s proposed 600 million rupees senior unsecured debenture issue. At the same time, the rating agency has confirmed the ratings on Singer’s outstanding senior unsecured notes at ‘A-(lka)’ with a stable outlook.
Proceeds from the issue would be used to refinance the existing short term debt of Singer (Sri Lanka).
Singer’s total consolidated debt at September 2009 amounted to about six billion rupees.
Of this, 1.5 billion rupees comprised of long-term debt (of which one billion is due within one year), and 1.4 billion rupees deposits of its fully-owned subsidiary Singer Finance.
The balance is made up of mostly short term loans and overdrafts, Fitch said.
Singer’s adjusted net debt/EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent.) improved to 4.2x in the nine months to end-September 2009 from 4.7x a year ago on the back of a reduction in working capital coupled with Singer’s cost curtailment measures.