Fitch Ratings Lanka has revised the outlook on Siyapatha Finance PLC (Siyapatha) to sable from negative and affirmed its National Long-Term Rating at ‘A-(lka)’.
The agency has also affirmed the National Long-Term Rating on Siyapatha’s senior unsecured debentures at ‘A-(lka)’ and subordinated debentures at ‘BBB+(lka)’. The rating action follows the revision of the Outlook on its parent Sampath Bank PLC’s ‘A+(lka)’ rating to stable from negative on June 13 2018.
Siyapatha’s rating reflects Fitch’s 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.
Siyapatha is rated two notches below its parent because of its limited role to the group’s core business and it is branded independently from its parent. Sampath’s leasing book accounted for just 7% of group loans at end-March 2018, of which half came from Siyapatha. Siyapatha is a small contributor to group profit, accounting for 5% of group 2017 pre-tax profit.
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 has also affirmed the National Long-Term Rating on Siyapatha’s senior unsecured debentures at ‘A-(lka)’ and subordinated debentures at ‘BBB+(lka)’. The rating action follows the revision of the Outlook on its parent Sampath Bank PLC’s ‘A+(lka)’ rating to stable from negative on June 13 2018.
Siyapatha’s rating reflects Fitch’s 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.
Siyapatha is rated two notches below its parent because of its limited role to the group’s core business and it is branded independently from its parent. Sampath’s leasing book accounted for just 7% of group loans at end-March 2018, of which half came from Siyapatha. Siyapatha is a small contributor to group profit, accounting for 5% of group 2017 pre-tax profit.
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.
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