Implied Support

Dec 16, 2011 (LBO) – Fitch Ratings Lanka has confirmed Singer Finance (Lanka) Plc’s (SFL) national long-term rating at ‘BBB+(lka)’ with a stable outlook. SFL’s rating reflects Fitch’s expectation that support would be forthcoming from the parent, Singer (Sri Lanka) (SSLP) which is rated ‘A(lka)’, given the strategic importance of SFL, a statement said.

In addition to sharing the Singer brand, SSLP’s 75 percent shareholding in SFL, and board level linkages, SFL provides financing for SSLP’s locally manufactured products, it said.

“Changes to the implied support to SFL from SSLP or in the strategic importance of SFL to its SSLP could trigger a rating action.”

The full rating report follows:

Fitch Ratings Lanka has affirmed Singer Finance (Lanka) Plc’s (SFL) National Long-Term rating at ‘BBB+(lka)’. The Outlook is Stable.

SFL’s rating reflects Fitch’s expectation that support would be forthcoming from the parent – Singer (Sri Lanka) Plc (SSLP; ‘A(lka)’/Stable), given the strategic importance of SFL to SSLP. In addition to sharing the Singer brand, SSLP’s 75% shareholding in SFL, and board level linkages, SFL provides financing for SS