FINANCIAL CHRONICLE \u2013 Fitch Ratings has granted a National Long-Term Rating of A-(lka) to the upcoming debenture issuance by Abans Finance, which amounts to 1.5 billion rupees. This rating aligns with the company\u2019s existing rating.<\/p>\n
According to Fitch Ratings, the debentures are rated similarly because they hold equal status to claims from the company’s other senior unsecured creditors. The debentures are set to be listed on the Colombo Stock Exchange.<\/p>\n
The comprehensive announcement is as follows:<\/p>\n
Fitch Assigns Final \u2018A-(lka)\u2019 Rating to Abans Finance\u2019s Proposed Senior Debt<\/p>\n
Fitch Ratings \u2013 Singapore\/Colombo: Fitch Ratings has assigned a final National Long-Term Rating of \u2018A-(lka)\u2019 to the proposed senior unsecured debentures of Abans Finance PLC, which are denominated in Sri Lankan rupees and could reach up to LKR1.5 billion. This final rating is consistent with the anticipated rating released on December 9, 2025, for the same category of debt and follows the confirmation of documentation that aligns with previously received information.<\/p>\n
Key factors influencing the rating include the proposed debentures’ maturity period of five years and their planned listing on the Colombo Stock Exchange. The proceeds from this issuance are intended to facilitate the growth of the company’s loan portfolio.<\/p>\n
Consistent with Fitch’s rating criteria, the proposed debentures are rated at the same level as Abans Finance\u2019s National Long-Term Rating due to their parity with claims from other senior unsecured creditors.<\/p>\n
Fitch had previously upgraded Abans Finance\u2019s National Long-Term Rating from \u2018BBB+(lka)\u2019 to \u2018A-(lka)\u2019 on January 24, 2025, following a similar upgrade of its parent company, Abans PLC, from \u2018AA-(lka)\u2019 to \u2018AA(lka)\u2019. The rating reflects Fitch’s assessment of the potential for significant support from the parent company if necessary, given its majority ownership, involvement in strategic decision-making through board representation, and shared branding.<\/p>\n
Despite the parent company holding a 50.2% stake following a rights issue in 2022 and prior divestiture attempts, Abans Finance is rated four notches lower than its parent due to its limited strategic significance and minimal contribution to the parent\u2019s consumer durables revenue. Fitch believes that Abans Finance could still be considered for medium-term divestiture.<\/p>\n
For further insights on the key rating drivers and sensitivities associated with Abans Finance, please refer to our commentary titled \u201cFitch Upgrades 10 Sri Lankan NBFIs\u2019 Ratings, Affirms 8 Following National Scale Recalibration,\u201d published on January 24, 2025.<\/p>\n
RATING SENSITIVITIES<\/p>\n
Factors that could lead to a potential downgrade of the proposed debenture rating include a downgrade of Abans Finance\u2019s National Long-Term Rating.<\/p>\n
Conversely, an upgrade of Abans Finance\u2019s National Long-Term Rating would result in a corresponding upgrade of the proposed debenture rating. (Colombo\/Apr16\/2026)<\/p>\n","protected":false},"excerpt":{"rendered":"
FINANCIAL CHRONICLE \u2013 Fitch Ratings has granted a National Long-Term Rating of A-(lka) to the upcoming debenture issuance by Abans Finance, which amounts to 1.5 billion rupees. This rating aligns with the company\u2019s existing rating. According to Fitch Ratings, the debentures are rated similarly because they hold equal status to claims from the company’s other […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[240,14],"tags":[],"class_list":["post-10221","post","type-post","status-publish","format-standard","hentry","category-sri-lanka","category-sl-stock-market"],"yoast_head":"\n