Fitch lifts Siyapatha Finance view to stable

Fitch Ratings said it revised the outlook on Siyapatha Finance plc to stable from negative and affirmed its national long-term rating at A-(lka).

The agency also said it affirmed the national long-term rating on Siyapatha's senior unsecured debentures at A-(lka) and subordinated debentures at BBB+(lka).

The outlook revision follows a similar outlook revision on its parent company, Sampath Bank plc's A+(lka) rating, Fitch explained.

The ratings reflect an expectation that support for Siyapatha would be forthcoming from Sampath, which owns 100% of Siyapatha and is involved in the strategic direction of the subsidiary through board representation, the agency said.

Siyapatha is rated two notches lower than its parent because of its limited role to the group's core business and it is branded independently from its parent, Fitch noted.

Siyapatha's senior unsecured debentures are rated at the same level as Siyapatha's national long-term rating as they constitute direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

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