25 August 2016 12:00 am
Fitch Ratings has assigned Siyapatha Finance PLC’s (Siyapatha; A-(lka)/Negative) senior unsecured redeemable debentures of up to Rs.2.5 billion a national long-term rating of ‘A-(lka)’.
The final rating is the same as the expected rating assigned on March 11, 2016 and follows the receipt of documents conforming to information already received.
The issue will have two tranches with bullet principal repayments in the third and fifth years and a fixed-rate coupon paid annually. The debentures will be listed on the Colombo Stock Exchange. Siyapatha expects to use the proceeds to fund lending growth, lengthen maturities of its liabilities and reduce structural maturity mismatches.
The issue has been rated at the same level as Siyapatha’s national long-term rating according to Fitch criteria and ranks equally with the claims of the company’s other senior unsecured creditors.
Siyapatha’s rating reflects Fitch’s view that support would be forthcoming from its parent, Sampath Bank PLC (A+(lka)/Negative), which owns 100 percent of Siyapatha and is involved in the company’s strategic direction through board representation. Siyapatha is rated two notches below its parent because of its limited contribution to the group’s core businesses and different branding from its parent.