Apr 01, Colombo: Fitch Ratings announced that Sri Lanka-based Hemas Holdings PLC's (HHP) proposed issue of senior unsecured redeemable debentures up to Rs. 1 billion has been assigned an expected rating of 'A+(lka)(EXP)'.
The final rating on the debentures is subject to the receipt of transaction documents conforming to information already received.
The proceeds of the issuance are likely for refinancing existing debt, therefore lengthening HHP's debt maturity profile.
HHP is a holding company with key wholly owned subsidiaries operating in fast-moving consumer goods, healthcare and transportation sectors. The company also has majority interests in subsidiaries across leisure and power.
Fitch assigning the rating noted that the Hemas' rating reflects the essential nature of and resilient demand for end products and services of its key operating subsidiaries, supported by its low financial risk at the holding company and Group levels.
The rating also factors in the businesses' strong brands, leading market share and moderate free cash flow generation.
The full statement by Fitch Rating can be found here.