Fitch Ratings Lanka has downgraded Siyapatha Finance PLC's (SLFL) National Long-Term Rating to ‘A-(lka)’ from 'A(lka)'. The Outlook is Stable. The agency has also downgraded the National Long-Term Ratings on SLFL's outstanding senior unsecured debentures to 'A-(lka)' from 'A(lka)' and outstanding subordinated debentures to 'BBB+(lka)' from 'A-(lka)'.
Key rating drivers, national ratings and senior debt.
The downgrade of SLFL's rating follows the downgrade of its parent, Sampath Bank PLC's National Long-Term Rating to 'A+(lka)' from 'AA-(lka)' on 8 July 2015. It reflects Sampath Bank's decreased ability to support SLFL. Fitch continues to believe that support for SLFL would be forthcoming from Sampath Bank, if needed.
SLFL is rated two notches below its parent, reflecting full ownership by Sampath Bank and the bank's influence on SLFL's strategic direction through representation on the finance company's board. Funding from its parent accounted for 15% of SLFL's total borrowings at end-March 2015. However, Fitch expects the share of deposits in SLFL's funding profile to increase after the regulator gave approval for it to be a Licensed Finance Company (LFC) in 2013, which allows SLFL to collect deposits.
www.island.lk
Key rating drivers, national ratings and senior debt.
The downgrade of SLFL's rating follows the downgrade of its parent, Sampath Bank PLC's National Long-Term Rating to 'A+(lka)' from 'AA-(lka)' on 8 July 2015. It reflects Sampath Bank's decreased ability to support SLFL. Fitch continues to believe that support for SLFL would be forthcoming from Sampath Bank, if needed.
SLFL is rated two notches below its parent, reflecting full ownership by Sampath Bank and the bank's influence on SLFL's strategic direction through representation on the finance company's board. Funding from its parent accounted for 15% of SLFL's total borrowings at end-March 2015. However, Fitch expects the share of deposits in SLFL's funding profile to increase after the regulator gave approval for it to be a Licensed Finance Company (LFC) in 2013, which allows SLFL to collect deposits.
www.island.lk
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