Rpt fitch affirms singer finance at bbb+(lka); outlook stable

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(Repeat for additional subscribers)Nov 28 (The following statement was released by the rating agency)Fitch Ratings Lanka has affirmed Singer Finance (Lanka) PLC's (SFL) National Long-Term Rating at 'BBB+(lka)'. The Outlook is Stable. The agency has also affirmed SFL's senior debentures at 'BBB+(lka)'. KEY RATING DRIVERS

SFL is rated two notches below its 80.4% parent, Singer (Sri Lanka) PLC (Singer; A(lka)/Stable) because Fitch classifies SFL as being of strategic importance to Singer. Apart from Singer's majority ownership in SFL, the two also share a common brand. In addition, Singer officials hold four of SFL's eight board seats. The existence of common creditors contributes to high reputational risk for Singer if SFL defaults. SFL's portfolio will likely remain dominated by vehicle financing (85% at end- March 2013), which is not related to Singer. SFL also provides financing for purchases made at Singer's consumer electronics stores. However, these loans accounted for around 6% of SFL's portfolio at end-March 2013 while SFL contributed an average of 16% to group pre-tax profit and financed 13% of Singer's sales during 2010 to 2012. It is possible that this collaboration increases over the near-to medium-term considering that Singer raised its stake in the subsidiary to 80.4% from 75% in September 2012. Singer also invested LKR149m in SFL's debentures in 2013.

Fitch expects SFL's asset quality to compare more favourably with its higher rated peers as SFL gradually reduces its exposure to lorry and tractor loans. It was mainly due to this sub-portfolio that the gross NPLs (for loans that are more than 180 days overdue and including interest in suspense) increased by 115% during March-September 2013 as buyers have been adversely affected by reduced business activity and adverse weather conditions. SFL's credit quality has historically remained strong, with its gross NPLs to loans at under 2% since 2008 which compares to 3.8% at end-September 2013.

RATING SENSITIVITIES The rating may be upgraded if there is a significant increase in SFL's strategic importance to Singer. One indication for this could be closer strategic alignment between the two entities resulting in consistently and sustainably higher financing for Singer's customers. Conversely, SFL's rating may be downgraded if there is any change to Singer's ability or propensity to extend support. This may stem from a downgrade to Singer's National Long-Term Rating or a material weakening of linkages with the parent, such as a dilution of Singer's majority ownership or greatly reduced strategic involvement in SFL. SFL accounted for 1.2% of the non-bank finance sector's assets at end-December 2012 and operates through 15 branches. The entity was set up in 2004 to support Singer's consumer financing business. var $relatedItems = $('lia "/article/riyad-bank-dividend-idUSD5N1E9002"Saudi\'s Riyad Bank recommends lower cash dividend for H2 2016/a/lilia "/article/idUSFWN1EU0AO"BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials Dubai Islamic Bank requests proposals for dollar sukuk - sources DUBAI, Jan 4 Dubai Islamic Bank (DIB) has asked banks to submit proposals to arrange a potential U.S. dollar-denominated sukuk issue, sources familiar with the situation said on Wednesday. BRIEF-Colliers International UK acquires hospitality asset management firm * Colliers international uk acquires market leading hospitality asset management firm BRIEF-Dena bank to consider capital planning for FY 2016-17 * Says to consider capital planning for FY 2016-17 i.e. raising of capital through equities and/or bonds Source text: this site Further company coverage: MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push