Singer’s working capital will not deteriorate : Fitch
View(s):Singer Sri Lanka uses a short-term facility worth Rs. 5 billion to service its working capital requirements, according to ratings agency Fitch. Further, the ratings agency also opined that “it does not expect its working capital dynamics to deteriorate materially in the near term given Singer’s strong market position and strong bargaining power with its suppliers and distributors”.
This was revealed as a part of the ratings agency’s recent announcement that it had assigned a National Long-term rating of “A(lka)”, with a “Stable” outlook, to three-year senior unsecured redeemable debentures proposed by Singer. In addition, it was further indicated that the rating “reflects the company’s multi-brand product portfolio that is diversified across price points and its well managed financing operations. Also, Singer has good access to credit from local banks, and regularly accesses capital markets to raise debt which has broadened its funding avenues… Singer expects to utilise part of the issue proceeds to repay maturing debentures, while the remainder will help restructure its balance sheet by lengthening the maturity profile of its debt”.
At the same time, Fitch has noted that Singer had unutilised, but approved, bank lines of Rs. 2.1 billion covering term-debt due within a year of Rs. 610 million, as well Rs. 362 million in cash reserves.
Follow @timesonlinelk
Related Posts:
Abans in mega Shopping Mall project : Fitch reportAbans Pvt Ltd, despite a slowing macro-economic environment and higher inflation levels, is likely to maintain a satisfactory credit profile ...
New deep-water terminal could trigger medium-term risks for JKHA new deep-water container terminal will provide a significant challenge through medium-term risks to John Keells Holdings (JKH), a rating ...
RAM upgrades Sanasa Development Bank’s outlook to ‘Positive’Sri Lanka's main co-op lender Sanasa Development Bank (SDB) has had its long-term ratings outlook upgraded to "Positive", from "Stable", ...
RAM reaffirms Commercial Bank ratingsRAM Ratings Lanka has reaffirmed Commercial Bank of Ceylon (COMB)'s long- and short-term financial institution ratings at AA+ and P1, ...
ICRA Lanka assigns [SL]A- with stable outlook to LOLCICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd - an associate of Moody’s Investors Service, has assigned an ...