Fitch Ratings has assigned an expected National Long-Term Rating of ‘A(EXP)(lka)’ to Siyapatha Finance PLC’s proposed senior unsecured debentures, valued at Rs. 5 billion, reinforcing confidence in the company’s financial standing.
The senior unsecured debentures, set to mature in five years and to be listed on the Colombo Stock Exchange, will be used to support Siyapatha’s loan-book expansion. According to Fitch, the debentures are rated at the same level as Siyapatha’s National Long-Term Rating because they rank equally with the company’s other senior unsecured obligations.
Siyapatha Finance, a fully owned subsidiary of Sampath Bank PLC, benefits from strong parental backing, a factor crucial in Fitch’s rating decision. Siyapatha’s National Long-Term Rating was upgraded earlier this year to ‘A(lka)’ from ‘BBB+(lka)’, following the upgrade of Sampath Bank’s rating to ‘AA-(lka)’ in January 2025.
Fitch emphasized that the final rating of the debenture issue is contingent on the receipt and review of final documentation that matches information already provided.
The agency noted that Siyapatha’s rating is two notches below Sampath Bank’s rating due to the subsidiary’s more limited role within the group’s core operations. However, strong expectations of extraordinary support from the parent continue to underpin Siyapatha’s solid credit profile.
Looking ahead, a downgrade or upgrade of Siyapatha’s National Long-Term Rating would directly affect the final rating assigned to the proposed debt issue.
The rating action follows Fitch’s broader recalibration of Sri Lankan non-bank financial institutions’ (NBFIs) ratings in January 2025.