Jan 28, 2008 (LBO) — Fitch Ratings has assigned an A+ (lka) national long term rating to a Singer Sri Lanka 800 million rupee note issue with a ‘negative’ outlook, the rating agency said Monday. It has also affirmed an ‘A (lka)’ rating on an outstanding note issue.
Money from the new note issue will be used to re-finance 600 million in loans and the balance would be used for working capital.
The Outlook on Singer’s ratings were revised to Negative from Stable in December 2007 following weaker profits amidst increasing debt, in large part, due to higher interest payments and lower sales growth, Fitch said.
Singer is Sri Lanka’s largest retailer of consumer electronics and household appliances in terms of retailing-revenues and points of presence. It is 84 percent owned by Singer Asia, which in turn, is 56.8 percent owned by Singer N.V. .