Fitch Affirms Rating on Singer (Sri Lanka) Notes Following Increase in Issue Amount

Fitch Ratings-Colombo/Mumbai/Singapore-19 March 2010: Fitch Ratings Lanka has today affirmed the 'A-(lka)' National Long-term debt rating on Singer (Sri Lanka) PLC's (Singer) proposed notes following an increase in the issue amount to LKR1,000m from LKR600m. Simultaneously the agency has affirmed the ratings on Singer's outstanding senior unsecured notes at 'A-(lka)'. The Outlook is Stable.

Singer's management upsized the issue given the increase in demand for the notes. The issue proceeds will be used to replace short-term debt.

The company's consolidated total debt amounted to LKR5.92bn at end-December 2009, of which LKR2.76bn comprised of short-term debt, LKR1.46bn deposits of its fully-owned subsidiary, Singer Finance Limited ('BBB(lka)'/Stable), and LKR1.7bn debentures and long-term debt (of which 70% is due within a year).

Singer is Sri Lanka's largest consumer durables retailer in terms of revenue and distribution network. It is 86%-owned by Singer Asia, which in turn is 56.8%-owned by Retail Holdings N.V.

For a detailed credit profile on Singer, please refer to Fitch's Credit Report dated December 4, 2009.

Contacts: Shahim Zubair, Colombo, +94 11 2541 900/ shahim.zubair@fitchratings.lk; Sahan Jayasooriya, +94 11 2541 900/ sahan.jayasooriya@fitchratings.lk.