Finance Upgrade

Dec 17, 2010 (LBO) – Fitch Ratings Lanka has upgraded Singer Finance (Lanka) Limited’s (SFL) national long-term rating to ‘BBB+(lka)’ from ‘BBB(lka)’ with a stable outlook, a statement said. SFL is a registered finance company and a fully-owned subsidiary of SSP. It has a network of six branches and six service centres in Sri Lanka. The upgrade of SFL’s rating follows the recent upgrade of its parent’s – Singer Sri Lanka (SSP) – national long-term rating to ‘A(lka)’ with a stable outlook from ‘A-(lka).

It reflects the increased level of support assumed to be available from SSP and the perceived strategic importance of SFL to its parent, the rating agency said.

“The upgrade of SSP’s rating is driven by its improved liquidity and credit metrics, as well as its improved competitive position and revenue potential emanating from revised tariff structures and opening of new geographical areas in the current post-war environment.”

Sri Lanka’s 30-year ethnic war ended in May 2009 resulting in an economic revival and increased consumer spending.

Fitch Ratings said the two companies share the ‘Singer’ brand and SFL provides consumer financing for SSP’s locally assembled products w