Fitch Ratings has affirmed Sri Lanka-based diversified conglomerate Sunshine Holdings PLC’s National Long-Term Rating at ‘A(lka)’. The Outlook is Stable.
The rating on the company reflects its exposure to defensive end-markets, strong positions in the markets for its key products and strong free cash flow generation despite short-term pressures faced by some its key operating subsidiaries. The rating also reflects Fitch’s expectations that the group is likely to maintain a low level of leverage.
Sunshine Holdings is the second-largest pharmaceutical distributor in Sri Lanka by sales. The government recently introduced a price control mechanism that Fitch expects will reduce Sunshine Holdings’ pharma revenue by 15%-20%.
However, Fitch believes the impact of the new regulation will be temporary and the long-term fundamentals for the segment remain intact as the population is rapidly aging, urbanisation is rising and per capita income is increasing, which will drive spending on healthcare.
0 comments: