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Fitch to withdraw Kotagala Plantations ratings now in Restricted Default

ECONOMYNEXT – Fitch Ratings said it will withdraw the rating of Sri Lanka’s Kotagala Plantations for commercial reasons, which has been downgraded to ‘Restricted Default’ after the failure to repay listed bonds on time.

“Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any
reason it deems sufficient,” the firm said in a statement.

“Fitch believes that investors benefit from increased rating coverage by Fitch and is providing approximately 30 days’ notice to the market of the rating withdrawal of Kotagala Plantations.

Related

Sri Lanka’s Kotagala Plantations downgraded to Restricted Default

The full statement is reproduced below:

Fitch Plans to Withdraw Ratings of Kotagala Plantations

Fitch Ratings-Colombo-24 July 2020: Fitch Ratings plans to withdraw the ratings of Kotagala
Plantations PLC for commercial reasons on or about 21 August 2020, which is approximately 30
days from the date of this commentary.

Fitch currently rates Kotagala Plantations as follows:

– National Long-Term Rating at ‘RD(lka)’
– Senior secured rating at ‘C(lka)’

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Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any
reason it deems sufficient. Fitch believes that investors benefit from increased rating coverage by
Fitch and is providing approximately 30 days’ notice to the market of the rating withdrawal of
Kotagala Plantations. Ratings are subject to analytical review and may change up to the time Fitch
withdraws the ratings.

Fitch’s last rating action for the entity was on 28 May 2020. The ratings were downgraded.