ECONOMYNEXT – Siyapatha Finance’s proposed senior unsecured debentures issue of 5 billion Sri Lankan rupees has been assigned a final National Long-Term Rating of ‘A(lka)’ by Fitch Ratings.
“The senior unsecured debentures are rated at the same level as Siyapatha’s National Long-Term Rating in accordance with Fitch’s criteria,” Fitch said.
“This is because the issue ranks equally with the claims of the company’s other senior unsecured creditors.”
The full statement is reproduced below:
Fitch Assigns Siyapatha Finance’s Senior Debt Final ‘A(lka)’
Wed 04 Jun, 2025 – 2:20 AM ET
Fitch Ratings – Colombo – 04 Jun 2025: Fitch Ratings has assigned Siyapatha Finance PLC’s (A(lka)/Stable) proposed Sri Lankan rupee-denominated senior unsecured debentures of up to LKR5 billion a final National Long-Term Rating of ‘A(lka)’.
The final rating is the same as the expected rating assigned on 22 April 2025 and follows the receipt of documents conforming to information already received.
Key Rating Drivers
The proposed debentures will mature in five years and will be listed on the Colombo Stock Exchange. The company plans to use the proceeds to support its loan-book expansion.
The senior unsecured debentures are rated at the same level as Siyapatha’s National Long-Term Rating in accordance with Fitch’s criteria. This is because the issue ranks equally with the claims of the company’s other senior unsecured creditors.
Siyapatha’s National Long-Term Rating was upgraded to ‘A(lka)’ from ‘BBB+(lka)’ on 24 January 2025 following the upgrade of parent Sampath Bank PLC’s (Sampath, AA-(lka)/Stable) National Long-Term Rating to ‘AA-(lka)’ from ‘A(lka)’. Siyapatha’s rating reflects Fitch’s expectation that parent Sampath would provide extraordinary support to its 100%-owned subsidiary, if needed. Siyapatha is rated two notches below its parent because of its limited role in the parent group’s core business.
Please refer to our commentary, Fitch Upgrades 10 Sri Lankan NBFIs’ Ratings, Affirms 8 Following National Scale Recalibration, published 24 January 2025 for details on the key rating drivers.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of Siyapatha’s National Long-Term Rating would lead to a downgrade of the senior debt rating.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of Siyapatha’s National Long-Term Rating would lead to an upgrade of the senior debt rating.
Date of Relevant Committee
23 January 2025
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
Siyapatha’s rating is linked to Sampath’s National Long-Term Rating. (Colombo/Jun4/2025)