Fitch ups Seylan Merchant Leasing to BBB-(lka)

Fitch Ratings said it upgraded Seylan Merchant Leasing plc's national long-term rating to BBB-(lka) from BB+(lka) on the acquisition of 84.5% of its equity by People's Leasing Co. Ltd. and removed the rating from rating watch positive. Fitch also said it affirmed People's Leasing's national long-term rating at A-(lka) and the national short-term rating on its LKR37.5 million outstanding debentures at F1(lka).

The outlook is stable.

The upgrade reflects the perceived support deemed to be available from People's Leasing given the importance of the former's registered finance company license to People's Leasing's long-term strategy, Fitch said.

The agency said it believes that any possible adverse implications that could arise as a result of Seylan Merchant's weaker balance sheet is not expected to materially alter People Leasing's credit profile, given the former's relatively small scale of operations.

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