Fitch Ratings has assigned Siyapatha Finance PLC's (A(lka)/Stable) proposed Sri Lankan rupee-denominated senior unsecured debentures of up to LKR5 billion an expected National Long-Term Rating of 'A(EXP)(lka)'.
Key Rating Drivers
The proposed debentures will mature in five years and will be listed on the Colombo Stock Exchange. The company plans to use the proceeds to support its loan-book expansion.
The final rating is subject to the receipt of final documentation conforming to information already received.
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 upgraded to 'A(lka)' from 'BBB+(lka)' on 24 January 2025 following the upgrade of parent Sampath Bank PLC's (Sampath, AA-(lka)/Stable) National Long-Term Rating to 'AA-(lka)' from 'A(lka)'. Siyapatha's rating reflects Fitch's expectation that parent Sampath would provide extraordinary support to its 100%-owned subsidiary, if needed. Siyapatha is rated two notches below its parent because of its limited role in the parent group's core business.
Please refer to our commentary, Fitch Upgrades 10 Sri Lankan NBFIs' Ratings, Affirms 8 Following National Scale Recalibration, published 24 January 2025 for details on the key rating drivers.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of Siyapatha's National Long-Term Rating would lead to a downgrade of the expected senior debt rating.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of Siyapatha's National Long-Term Rating would lead to an upgrade of the expected senior debt rating.
