Fitch Ratings has revised the Outlook on Sri Lanka Telecom’s (SLT) Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) to Stable from Negative and affirmed the IDRs at ‘B+’.
The rating actions follow the Outlook revision on Sri Lanka’s Long-Term Foreign- and Local-Currency IDRs to Stable from Negative on February 9 2017. The agency also affirmed SLT’s National Long-Term Rating at ‘AAA(lka)’ with a Stable Outlook. SLT’s IDRs are constrained by the sovereign’s IDRs of ‘B+’, as the government directly and indirectly holds a majority stake in SLT and exercises significant influence on its operating and financial profile. Therefore the Outlook has been revised to Stable,
Following the revision of the sovereign Outlook to Stable. SLT’s second-biggest shareholder, Malaysia’s Usaha Tegas which owns 44.9% of SLT - does not have any special provisions in its shareholder agreement that dilute the government’s significant influence over SLT.
0 comments: