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Fitch rates Senkadagala Finance notes BBB+(lka)
Fitch Ratings said it assigned an expected national long-term rating of BBB+(lka) to Senkadagala Finance plc's proposed issue of senior unsecured redeemable listed debentures of up to 1 billion in Sri Lanka ringgit.
The proposed debentures are rated at the same level as the company's national long-term rating as they will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank, Fitch said.
The proposed debentures will be issued in two tranches with a maturity of three and four years while coupon payments will be at fixed and floating rates.
The proceeds will be used to fund the company's ongoing lending activities and to help reduce maturity mismatches between its assets and liabilities, Fitch said.
The ratings reflect the company's long operating history and sound credit profile through economic cycles, supported by credit controls, low refinancing risk and high profitability compared with domestic peers, the agency said.
Its credit profile is constrained by its elevated financial risk as reflected in lower capitalization measured by its tier 1 capital adequacy ratio and equity/assets ratio during the financial year that ended March 2012, Fitch said.
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