Fitch Ratings Lanka assigned an 'A-(lka)' National Long-term rating to Singer (Sri Lanka) PLC's (Singer) proposed Rs.600 million senior unsecured debenture issue from which the proceeds would be used to refinance the company's existing short term debt.
In a press release this week, the agency stated that Singer's total consolidated debt at September 2009 amounted to about Rs.6 billion. Of this, Rs.1.5 billion comprised of long-term debt (of which Rs.1 billion is due within the year) and Rs.1.4 billion deposits of its fully-owned subsidiary Singer Finance Limited.
The balance is made up of mostly short term loans and overdrafts. Fitch also affirmed the ratings on Singer's outstanding senior unsecured notes at 'A-(lka)'. The Outlook is Stable.
Singer's adjusted net debt/EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent) improved in the nine months to end-September 2009 on the back of a reduction in working capital coupled with Singer's cost curtailment measures.