Fitch rates Abans notes A-(lka)

Fitch Ratings said it assigned Abans Ltd.'s proposed issue of senior unsecured redeemable debentures of up to LKR 2 billion an expected national long-term rating of A-(lka)(EXP).

The rating is contingent upon the final transaction documents conforming to information already received.

Fitch said the proposed debentures are rated in line with the Sri Lanka-based retailer's national long-term rating of A-(lka), as they will rank equally with the company's other senior unsecured creditors.

The debenture is expected to be issued in three tranches with maturities of three, four, and five years at fixed coupon rates. The proceeds will be used to re-finance part of the company's short-term borrowings, lowering the cost of funds, and will help reduce Abans' exposure to refinance- and interest rate risk.

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