Fitch cuts Singer Sri Lanka view to negative

Fitch Ratings said it affirmed the national long-term ratings on Singer Sri Lanka Ltd.'s senior unsecured notes at A+(lka).

The outlook has been revised to negative.

The outlook change primarily reflects the weakened net income levels at Singer amidst increasing debt levels, in large part, due to higher interest payments and lower sales growth, Fitch said.

Fitch said it does not currently expect any significant policy changes by the government that would ameliorate the high interest rate regime over the next 12 to 18 months and points out that sustaining profitability and the quality of its consumer loan book will be important if Singer is to maintain its current ratings.

A further weakening of Singer's credit metrics will lead to a downgrade of the ratings, the agency said.

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