Feb 01, 2008 (LBO) – Fitch Sri Lanka has confirmed the ‘BBB (lka)’ national long-term rating of Singer Finance (Lanka) Limited (SF) with a ‘stable’ outlook.
SF was established as a RFC in April 2004, and currently operates through five branches.
“The principal factor taken into consideration in SF’s rating is the implied support assumed to be available from its parent, Singer (Sri Lanka) Limited,” Fitch Ratings said.
Singer Sri Lanka’s senior unsecured notes are rated ‘A+ (lka)’ with a ‘negative’ outlook.
Singer is the country’s largest retailer of consumer electronics and household appliances in terms of revenues and points of presence.
“SF is a wholly-owned subsidiary of Singer, and enjoys the usage of a common brand name with that of its parent,” Fitch said.
“The company provides strategic benefits to Singer in terms of financing its products, and by broadening and diversifying the group’s portfolio and funding channels.”
Singer Finance’s net interest margin had declined to 11.9 percent by September 2007, from 14.4 percent at in March 2007 due to greater funding costs.
But an improvement in asset quality, and low