Fitch rates Singer Sri Lanka notes A-(lka)

Fitch Ratings said it assigned a national long-term rating of A-(lka) to Singer Sri Lanka plc’s proposed unsecured redeemable debenture issue of up to 3 billion in Sri Lankan rupee.

The debentures are likely to have a three-year tenor and to be issued in two tranches with fixed- and floating-rates.

The proceeds will be used as working capital and to refinance existing debt, Fitch said.

The debentures are rated at the same level as Singer’s national long-term rating of A-(lka) because they represent senior unsecured obligations of the company and rank equally with the company’s other senior unsecured debt, the agency said.

Singer’s position as a leading consumer durables retailer is supported by its extensive distribution network, multi-brand strategy and robust after-sales service, Fitch said.

Singer’s extensive reach of more than 1,000 outlets is important given its mass market focus, the agency said.

Singer retails a range of products across a number of brands and price points, Fitch added.

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