Fitch upgrades Singer Finance to 'BBB(lka)'

Fitch Ratings Lanka has upgraded Singer Finance (Lanka) Limited's (SFL) National Long-term rating to 'BBB(lka)' from 'BBB-(lka)'.

The outlook is stable.

The upgrade reflects the increased level of support available from its parent, Singer Sri Lanka PLC (SSP; 'A-(lka)'/Stable), and in the agency's view, SFL's increased strategic importance to SSP.

The two companies share the 'Singer' brand; and from early 2009, along with the traditional lending business SFL started providing consumer financing for SSP's locally-assembled products. SSP infused Rs 200m of equity into SFL in October 2009 and channelled Rs 833m of borrowings to SFL at end-December 2009 to support SFL's portfolio growth. SFL contributed to a 38.3 percent of group pre-tax profit in the 12 months to end-December 2009 (12 months to end-December 2008: 15 percent).

SFL is a registered finance company and a fully-owned subsidiary of SSP.