Fitch Ratings has assigned Singer (Sri Lanka) PLC’s (Singer; A-(lka)/Stable) proposed senior unsecured debenture issue of up to Rs. 4 billion a National Long-Term Rating of ‘A-(lka)(EXP)’.
The debenture is to be issued at a fixed rate with a tenor of three years. The proceeds of the proposed issue will be used to refinance existing debt. Singer’s proposed senior unsecured debt is rated at the same level as its National Long-Term Rating, as the debentures rank equally with other senior unsecured obligations. The final rating is subject to the receipt of final documents conforming to information already received.
Fitch expects demand for consumer durables to be sluggish in the next six to 12 months due to rising interest rates, an increase in taxes on consumer durables and a depreciating Sri Lankan rupee, which raises the prices of imported goods that account for the majority of products sold by Singer.