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ICRA assigns Provisional [SL]A(CE) rating to LOLC

13 May 2021

ICRA Lanka Ltd. has assigned the Provisional [SL]A(CE) rating with Stable outlook to the proposed Rs. 1,000 million guaranteed senior listed redeemable rated debenture programme of LOLC Ceylon Holdings Ltd. The letters CE in parenthesis suffixed to a rating symbol stand for Credit Enhancement. A CE rating is specific to the rated issue, its terms, and its structure. The CE ratings do not represent ICRA Lanka’s opinion on the general credit quality of the issuers concerned. The rating for the guaranteed senior redeemable debentures is based on the strength of the unconditional and irrevocable guarantee from LOLC Holdings PLC (LOLC) (rated SL A with Stable outlook by ICRA Lanka) covering the principal and two interest installments (annual) of the proposed issue. The guarantor undertakes the obligation to pay, on demand from the Trustee, Rs. 1,000 million being the total principal sum, and two-yearly interest installments of the proposed guaranteed senior listed redeemable debentures. The rating also assumes that the guarantee will be duly invoked by the Trustee, as per the terms of the underlying trust deed and the guarantee agreement, in case there is a default in payment by LOLC Ceylon (Issuer). The Provisional rating is subject to the fulfilment of all conditions under the structure and review of all the final documentation pertaining to this transaction by ICRA Lanka.


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