...Abans PLC's ratings reflect its strong market position in consumer durables retail in Sri Lanka, its extensive brand portfolio, w ide distribution netw ork and w ell-managed hire-purchase (HP) business, w hich are partly offset by investments in riskier non-core operations such as real estate and financial services. The ratings also reflect Fitch Ratings' view that Abans w ill maintain leverage ¡ defined as net lease adjusted debt/operating EBITDAR excluding its finance subsidiary ¡ at below 5.5x over the medium term. Leverage w as 4.7x at the end of the financial year to 31 March 2019 (FYE19). Abans' debentures are rated at the same level as the National Long-Term Rating because its senior unsecured debt is not materially subordinated to prior-ranking debt. This is because prior ranking debt w ill remain below 2.5x EBITDA (FY20 forecast: 1.7x). Fitch rates Abans based on the consolidated profile of its w eaker parent Abans Retail Holdings (Pvt) Limited (ARH) d ue to strong operational...
