FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka based Aban’s Rs. 2 bn. debt issue rated at ‘A-(lka)(EXP)’ by Fitch

Sri Lanka based Aban’s Rs. 2 bn. debt issue rated at ‘A-(lka)(EXP)’ by Fitch

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Sri Lanka based Abans Limited proposed Rs. 2 billion debt issue has been assigned an expected rating of ‘A-(lka)’ by Fitch Ratings Lanka Limited.

According to Fitch, the debenture is expected to be issued in three tranches with maturities of three, four, and five years at fixed coupon rates.

Abans will use the proceeds to re-finance part of the company’s short-term borrowings, lowering the cost of funds, and will help reduce Abans’ exposure to refinance- and interest rate risk.

Here we reproduce the rating release issued by Fitch

Fitch Ratings-Colombo-23 September 2013: Fitch Ratings has assigned Abans Limited’s proposed issue of senior unsecured redeemable debentures of up to LKR2bn an expected National Long-Term rating of ‘A-(lka)(EXP)’. The rating is contingent upon the final transaction documents conforming to information already received.

The proposed debentures are rated in line with the Sri Lanka-based retailer’s National Long-Term Rating of ‘A-(lka)’, as they will rank equally with the company’s other senior unsecured creditors.

The debenture is expected to be issued in three tranches with maturities of three, four, and five years at fixed coupon rates. The proceeds will be used to re-finance part of the company’s short-term borrowings, lowering the cost of funds, and will help reduce Abans’ exposure to refinance- and interest rate risk.

Key Rating Drivers
Higher leverage: The Negative Outlook on the Issuer’s National Long-Term rating reflects net leverage above the trigger of 4.5x lease-adjusted net debt/operating EBITDAR (ex. Abans Finance PLC) at 4.60x in FYE13 (financial year ends in March), up from 2.67x in FYE12.

Leverage increased as a result of debt incurred to fund Abans’s stake in its real estate development Joint Venture, the Colombo City Mall, in addition to bridging finance extended to a related company that housed what was once the group’s motorcycle retail business.

Fitch expects slower revenue growth for Abans in FYE14, leading to lower profitability in the company’s cyclical core business of consumer durables. This may constrain Abans’ ability to reduce its leverage below 4.5x by FYE14 and beyond, even if the bridging loan were repaid by the counterparty.

Strong market share: Strong brands, in addition to an extensive distribution network of 1,059 outlets, 439 of which are Abans’ own stores, contribute to Abans’ position as a leading consumer durables retailer in Sri Lanka. Abans’s revenue concentration on LG has reduced over the last three- to four years in favour of other brands such as HP, Haier, Toshiba, Philips, Whirlpool, and Sanyo.

Moderate refinancing risk: At FYE13, Abans had LKR459m and LKR1.6bn of cash and unutilized credit facilities, respectively against LKR2.3bn debt maturing in FY14. Fitch expects free cash flow (FCF, defined as operating cash after dividends and capex) to remain negative in FY14 due to the working capital-intensive nature of the retail business, which will require a further increase in borrowings. These risks are mitigated by the strength of Abans’s core business and its access to domestic banks.

Rating Sensitivities
Negative: Future developments that may, individually or collectively, lead to a negative rating action include:
-Leverage being sustained above 4.5x at FYE14 and beyond
-Fixed charge coverage (measured as EBITDAR/Interest expense + rent) falling below 1.25x on a sustained basis (FYE13:1.53x)
-Material deviation in its real estate project from current expectations resulting in further cash injections from Abans
-A material weakening of the credit profile of Abans Finance PLC

Positive: No positive rating action is expected given that the rating is on a Negative Outlook. However, future developments that may individually or collectively lead to the Outlook being revised to Stable include:
- Leverage falling below 4.5x on a sustained basis
-Smooth progress of its real estate project which will limit Abans’s financial liability to the initial investment value.
http://www.news360.lk/

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum