Fitch Ratings has assigned Siyapatha Finance PLC’s (A(lka)/Stable) proposed Sri Lankan rupee-denominated senior unsecured listed debentures a final National Long-Term Rating of ‘A(lka)’.
The final rating is the same as the expected rating assigned on 11 June 2020 and follows the receipt of documents conforming to information already received.
The notes, which total LKR2.0 billion, will mature in three years and carry fixed coupons. The company plans to use the proceeds to support its loan expansion and to manage its liquidity position in the ordinary course of business.
The senior unsecured debentures are rated at the same level as Siyapatha’s National Long-Term Rating in accordance with Fitch’s criteria. This is because the issue ranks equally with the claims of the company’s other senior unsecured creditors. Siyapatha’s National Long-Term Rating was revised up to ‘A(lka)’/Stable, from ‘A- (lka)’/Stable, on 10 June 2020 due to similar action on the parent Sampath Bank PLC’s (AA-(lka)/Stable) National Long-Term Rating following the recalibration of the agency’s Sri Lankan national rating scale.
Siyapatha’s rating reflects Fitch’s expectation that Sampath would provide extraordinary support to its fully owned subsidiary, if needed. Siyapatha is rated two notches below its parent because of its limited role in the group’s core business.
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