Sri Lanka Telecom to borrow from local banks to rollover debt: Fitch

ECONOMYNEXT – Sri Lanka Telecom, the island’s main fixed line telco, is likely to borrow from local banks to rollover maturing debt, Fitch Rating said in a new report.

SLT, rated B with a stable outlook, had debt of about 53 billion rupees as of end-September 2018, a quarter of which was denominated in US dollars, the rating agency said in a report on Asia-Pacific telecommunications companies.

“Fitch expects Sri Lanka Telecom to access local banks to refinance its maturing debt.”

SLT plans to refinance short-term debt maturities of 12 million dollars through Sri Lankan rupee bank loans, the Fitch report said.

Fitch Ratings said it expects capital expenditure for telcos in the region to remain high to meet the exponential growth in data services.

“Fitch Ratings expects regional EBITDA to grow at a modest pace of 3-4 percent in 2019; we see struggling markets such as India and Indonesia turning around after EBITDA contraction in 2018.”
(Colombo/January 25/2019)

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