Debt Rating

Sept 19, 2011 (LBO) – Fitch Ratings Lanka has assigned Senkadagala Finance’s (SFC) proposed senior unsecured redeemable debentures of up to 300 million rupees a ‘BBB+(lka)’ rating. The agency has also confirmed and withdrawn the ‘BBB+(lka)’ rating on SFC’s proposed listed debenture issuance of a billion rupees scheduled to take place in March 2011 due to its non-issuance, a statement said.

The full Fitch statement follows:

Fitch Ratings-Colombo/Singapore-19 September 2011: Fitch Ratings Lanka has assigned Senkadagala Finance PLC’s (SFC) proposed senior unsecured redeemable debentures of up to LKR300m a ‘BBB+(lka)’ rating. Simultaneously, the agency has affirmed and withdrawn the ‘BBB+(lka)’ rating on SFC’s proposed listed debenture issuance of LKR1bn (scheduled to take place in March 2011) due to its non-issuance.

The proposed debt is rated at the same level as SFC’s National Long-Term Rating of ‘BBB+(lka)’/Stable. It has a three-year tenure, and is expected to be raised at a fixed coupon rate, enabling SFC to minimize interest rate risk on its loan book. The debenture will be utilized to finance SFC’s lending operations.

SFC’s ratings reflect its long operat

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