Senkadagala Finance Debenture Issue at a glance

sriranga · 1 22-Nov-2013 Senkadagala Finance - Debenture Issue Fri Nov 22, 2013 11:43 am

sriranga

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Senkadagala Finance Debenture Issue at a glance Senk10

http://www.cse.lk/cmt/upload_cse_announcements/7771385099012_.pdf

sriranga

sriranga

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Fitch Ratings-Colombo/Hong Kong-19 November 2013: Fitch Ratings Lanka has assigned Senkadagala Finance PLC's (SFC; BBB+(lka)/Stable) proposed subordinated debentures of up to LKR1.25bn a final National Long-Term Rating of 'BBB(lka)'. The debentures have a tenor of up to five years with fixed coupons.

The assignment of the final rating follows the receipt of final documents, which conform to information previously received. The final rating is at the same level as the expected rating assigned on 14 November 2013.

KEY RATING DRIVERS
The proposed debentures are rated one notch below SFC's National Long-Term Rating of 'BBB+(lka)' to reflect their gone-concern loss-absorption quality in the event of a liquidation, in line with Fitch's criteria for rating such securities.

RATING SENSITIVITIES
The subordinated debt rating will move in tandem with the Long-Term Ratings of SFC.
An upgrade of SFC's rating is contingent upon sustained stronger capital and a more robust deposit franchise that would allow the company to expand in a controlled manner. SFC's rating could be downgraded if asset quality continues to weaken, leading to a material decline in capitalisation or excessive asset encumbrance.

Contacts:
Primary Analyst
Kanishka de Silva
Analyst
+941 1254 1900
Fitch Ratings Lanka Ltd
15-04, East Tower, World Trade Center
Colombo 1, Sri Lanka

Secondary Analyst
Prasanka Rajapaksha, CFA
Assistant Vice President
+941 1254 1900
Committee Chairperson
Sabine Bauer
Senior Director
+852 2263 9966
Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727, Email: bindu.menon@fitchratings.com.
Additional information is available on www.fitchratings.com.
Applicable criteria, "Global Financial Institutions Rating Criteria", dated 15 August 2012, "National Ratings Criteria", dated 30 October 2013 and "Assessing and Rating Bank Subordinated and Hybrid Securities", dated 5 December 2012, are available on www.fitchratings.com.

Additional Disclosure
Solicitation Status
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE
READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT,
CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER
RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT'
SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR
WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE
ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
http://fitchratings.lk/