Sri Lanka Telecom, Ceylon Electricity Board ratings lowered after sovereign downgrade

ECONOMYNEXT – Fitch Ratings has lowered the domestic rating of two state-controlled utilities after a re-caliberation of the scale following a sovereign downgrade to ‘CCC’ late last year.

Sri Lanka Telecom’s National Long-Term Rating lowered to ‘AA-(lka)’ from ‘AA+(lka)’. The outlook is ‘Stable’

State-run Ceylon Electricity Board (CEB)’s National Long-Term Rating revised to ‘AA-(lka)’ from ‘AA+(lka)’. The outlook is outlook ‘Stable’.

“The recalibration of our Sri Lankan National Rating scale has resulted in rating affirmations in some cases and the assignment of revision ratings to others,” Fitch Ratings said.

“Revision ratings are used to modify ratings for reasons that are not related to credit quality.”
Several domestic ratings of private firms have been raised as a result of the sovereign rating cut and others have been confirmed.

The domestic ratings of following firms have been confirmed at ‘AAA(lka)’

Dialog Axiata PLC
– National Long-Term Rating affirmed at ‘AAA(lka)’; Outlook Stable

Distilleries Company of Sri Lanka PLC (DIST)
– National Long-Term Rating affirmed at ‘AAA(lka)’; Outlook Stable

Melstacorp PLC
– National Long-Term Rating affirmed at ‘AAA(lka)’; Outlook Stable

Hemas Holdings PLC
– National Long-Term Rating affirmed at ‘AAA(lka)’; Outlook Stable

Lion Brewery (Ceylon) PLC
– National Long-Term Rating affirmed at ‘AAA(lka)’; Outlook Stable

Lakdhanavi Limited
– National Long-Term Rating affirmed at ‘AA+(lka)’; Outlook Stable (Colombo/Dec14/2021)