Fitch Ratings Lanka said on Monday it has assigned an ‘A+(lka)’ National Long-term rating to Singer Sri Lanka’s (Singer) proposed LKR800 million notes issue.

At the same time, the agency has affirmed ratings on its outstanding senior unsecured notes at ‘A+(lka)’. The Outlook on the ratings is Negative.

Proceeds from the LKR800m notes issue will primarily be utilised to refinance approximately LKR600m of loan facilities. The balance is allocated for working capital. The Outlook on Singer’s ratings were revised to Negative from Stable in December 2007 reflecting weakened net income levels amidst increasing debt, in large part, due to higher interest payments and lower sales growth.

Singer is Sri Lanka’s largest retailer of consumer electronics and household appliances in terms of retailing-revenues and points of presence. It is 84%-owned by Singer Asia, which in turn, 56.8%-owned by Singer N.V.