Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to

Leading News from Sri Lanka::

* Fitch rates Senkadagala Finance's subordinated debt final 'BBB(lka)'
Tue, Aug 13, 2019, 08:57 am SL Time, ColomboPage News Desk, Sri Lanka.

Aug 13, Colombo: Fitch Ratings Lanka has assigned Senkadagala Finance PLC's (Senka, BBB+(lka)/Stable) subordinated unsecured debentures a final National Long-Term Rating of 'BBB(lka)'.

The issuance totals LKR 1.75 billion, with the debentures to mature in five years and carry fixed coupons. The debentures are to be listed on the Colombo Stock Exchange. The debenture issue will improve Senka's Tier 2 capital base and the proceeds will be used to fund loan-book growth.

The final rating is the same as the expected rating assigned on 2 April 2019 and follows the receipt of documents conforming to information already received.


The subordinated debentures are rated one notch below Senka's National Long-Term Rating to reflect the subordination to senior unsecured obligations.

Senka's National Long-Term Rating was affirmed on 1 July 2019 and reflects its high risk appetite stemming from its SME-centric loan book and lower financial flexibility compared with peers due to a heavy reliance on secured wholesale funding. This offsets any potential benefits stemming from Senka's established franchise in the domestic vehicle-financing sector and well-matched maturity gaps.


The rating of the notes will move in tandem with Senka's National Long-Term Rating.

An upgrade of Senka's rating is contingent upon the company sustaining stronger capital levels and improved financial flexibility through a more robust deposit franchise. Senka's rating could be downgraded if asset quality weakens, leading to a significant decline in capitalisation or excessive asset encumbrance.


ColomboPage - Recent 10 Stories ::
JVP to announce 'Candidate of people's anticipation' today
-- [45 minutes ago]
Fitch Affirms Sri Lanka's Co-Operative Insurance at 'BBB+(lka)'; Outlook Stable
-- [51 minutes ago]
Investigation into dumping 890 metric tons of potatoes during the 52-day unconstitutional government
-- [1 hour and 10 minutes ago]
Massive development of the Northern Province in the last three years
-- [2 hours ago]
Sri Lanka to rehabilitate mangrove lands used for aquaculture and salterns
-- [2 hours ago]
CID seeks public support to apprehend a suspect
Construction of Sri Lanka Korea National Vocational Training Institute completed
PM says young people should be given priority to change the political system
Will not allow the country's economy to collapse, PM vows
Mahindra & Mahindra inaugurates first automotive assembly plant in Sri Lanka

Copyright © 2000, 2016 by (LLC) :
The news and other contents on ColomboPage are copyrighted property of, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.