Sri Lanka JKH to end Fitch rating deal

EconomyNext – Sri Lanka’s John Keells Holdings said Friday it will end its rating agreement with Fitch Ratings Lanka from 27 March 2015 and would consider an international rating when needed.

"The company believes that a local rating is not warranted at this juncture of time considering the company’s current debt funding sources which are predominantly in foreign currency," a stock exchange filing said.

"However, if and when the need arises, the company will consider obtaining an international credit rating."

Fitch downgraded John Keells Holdings to ‘AA+(lka)’ with a stable outlook in September 2014, saying then it does not expect any positive rating action in the next 24 months.

Future developments that may lead to a positive rating action include clarity on the execution of the company’s integrated resort project and a higher level of dividends from the transportation sector, Fitch noted at the time.

JKH’s integrated resort project casino has been cancelled by Sri Lanka’s new government along with tax breaks for the gambling venture.

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