Fitch affirms Singer (Sri Lanka) at ĎA(lka)í
Fitch Ratings Lanka has affirmed the National Long-Term rating on
Singer (Sri Lanka) PLCís (Singer) senior unsecured notes at ĎA(lka)í .
The outlook is stable.
The rating reflects Singerís market position as one of Sri Lankaís
largest consumer durables retailers, its established franchise and
extensive distribution network, a multi-brand product portfolio that is
diversified across price points, and well-managed financing operations.
The rating also reflects Singerís improved credit profile over 2010
and the nine-months to end-September 2011 (9M11) as expected.
This was supported by the economic upswing that prevailed locally
during the same period, combined with tax incentives granted to the
consumer durables industry that reduced the impact from the grey-market.
In 9M11, Singerís revenue increased by an annualized 29% to Rs 15.4 bn
(2010: 34.5%, 2009: -13%).
Much of this growth was driven by same-store sales, as the industry
benefited from lower duties on imported consumer goods and benign
interest rates and inflation.
Its EBITDAR margin remained healthy at 15.4% in 9M11 (2010: 15.6%,
Singerís liquidity position remained comfortable. As at end-September
2011, it had cash and cash equivalents of Rs 374 million and undrawn
facilities of Rs 2.5 billion, against medium-term debt maturities of Rs
440 million due within one year and Rs 698 million due within one-two