ECONOMYNEXT – Sri Lanka’s LB Finance’s proposed listed senior unsecured debentures of up to 10 billion rupees was assigned a final National Long-Term Rating of ‘A-(lka)’ by Fitch Ratings.
The debentures are rated at the same level as LB’s National Long-Term Rating, 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 Rates LB Finance’s Senior Debt Final ‘A-(lka)’
Fitch Ratings has assigned LB Finance PLC’s (A-(lka)/Stable) proposed Sri Lankan rupee-denominated listed senior unsecured debentures of up to LKR10 billion a final National Long-Term Rating of ‘A-(lka)’.
The final rating on the senior debentures is the same as the expected rating assigned for the same debt class on 4 November 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 loan-book expansion.
The debentures are rated at the same level as LB’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.
Fitch reviewed LB’s ratings with no rating action on 28 August 2025. Our last rating action on LB was on 24 January 2025, when we upgraded LB’s National Long-Term Rating to ‘A-(lka)’, from ‘BBB+(lka)’, after a Sri Lankan national rating recalibration.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of LB’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 LB’s National Long-Term Rating would lead to an upgrade of the senior debt rating. (Colombo/Jan23/2026)