Fitch Ratings Lanka has assigned Siyapatha Finance PLC’s (Siyapatha; A-(lka)/Negative) subordinated redeemable debentures of up to Rs1 billion a final National Long-Term Rating of ‘BBB+(lka)’.
The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on July 21, 2017.
The debentures will have a five-year tenor with bullet principal repayment at maturity. Coupon payments will be made annually at a fixed rate.
The debentures will be listed on the Colombo Stock Exchange. Siyapatha expects to use the proceeds to strengthen its regulatory Tier 2 capital and to fund its loan book.
The debentures are rated one notch below Siyapatha’s National Long-Term Rating to reflect their subordination to senior unsecured creditors. Siyapatha’s National Long-Term Rating was last affirmed at ‘A-(lka)’ with a Negative Outlook on July 21, 2017. Siyapatha’s rating reflects Fitch’s view that support would be forthcoming from its parent, Sampath Bank PLC (A+(lka)/Negative), which owns 100% of Siyapatha and is involved in the strategic direction of Siyapatha through board representation.
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