Fitch Rates Senkadagala Finance's Proposed Debt 'BBB+(lka)'

Fitch Ratings Lanka has assigned Senkadagala Finance PLC's (SFC) proposed senior unsecured redeemable debentures of up to Rs300m a 'BBB+(lka)' rating.

Simultaneously, the agency has affirmed and withdrawn the 'BBB+(lka)'rating on SFC's proposed listed debenture issuance of Rs 1b (scheduled to take place in March 2011) due to its non-issuance.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 minimise interest rate risk on its loan book. The debenture will be used to finance SFC's lending operations.

SFC's ratings reflect its long operating history, sustained healthy capital structure, and its well-managed credit control systems and processes relative to the sector.