FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Millennial Capital Youtube Channel
by MillennialC Today at 1:00 am

» Crypto , Digital Currency Trading , Forex
by MillennialC Today at 12:59 am

» DIPD/HAYC/HAYL
by Jana Yesterday at 11:11 pm

» PANASIAN POWER PLC (PAP.N0000)
by Jana Yesterday at 11:08 pm

» Has the CSE reached the peak actually in January?
by ONTHEMONEY Yesterday at 10:14 pm

» Blossom March
by Vishwanarth Yesterday at 9:14 pm

» ACL post share split trading and the future potential
by Jana Yesterday at 7:45 pm

» still I believe this
by stockback Yesterday at 6:59 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:39 pm

» Good time to collect fundamentally sound shares
by madukp Yesterday at 6:30 pm

» GLAS will be winner with Super Gain.
by Eranga87 Yesterday at 6:13 pm

» TILE / LWL / RCL
by MaJa Yesterday at 6:07 pm

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by Susil Mendis Yesterday at 4:11 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by subash81 Yesterday at 2:15 pm

» RICH or TKYO
by subash81 Yesterday at 2:14 pm

» Inefficiency
by stockchaser Yesterday at 1:25 pm

» Sometimes you might find that you have lost all your money in the market by investing in the non profitable stocks in the market.
by pjrngroup Yesterday at 10:58 am

» පෙබරවාරි මාසේ කොළඹ කොටස් වලට මොකක්ද වුනේ - බැසුවාද ? බැස්සාද ?
by Wickyz Yesterday at 10:54 am

» NATIONS TRUST BANK PLC (NTB.N0000)
by Eranx Yesterday at 8:00 am

» TOKYO CEMENT COMPANY (LANKA) PLC
by arun.cse Mon Mar 01, 2021 1:14 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka Telecom’s rating affirmed at ‘BB-’ by Fitch

Sri Lanka Telecom’s rating affirmed at ‘BB-’ by Fitch

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Sri Lanka Telecom’s Long-Term Foreign and Local Currency Issuer Default Ratings of ‘BB-’ have been affirmed by Fitch Ratings Lanka.

The Outlook of the firm is Stable.

The rating agency says, the telecom firm’s ratings reflect its market-leading position in Sri Lanka’s fixed-line services underpinned by its monopoly in wire line and fixed-broadband.

Fitch notes that the rating also reflect SLT’s number two position in mobile and its evolving share in paid-TV, making the company one of two ‘quadruple-play’ providers in the country.

Below is the full rating release issued by Fitch Ratings Lanka

Fitch Ratings-Singapore/Colombo-22 March 2013: Fitch Ratings has affirmed Sri Lanka Telecom PLC’s (SLT) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BB-’. The agency also affirmed SLT’s National Long-Term Rating at ‘AAA(lka)’. The Outlook is Stable.

Key Rating Drivers
Strong market position: SLT’s ratings reflect its market-leading position in Sri Lanka’s fixed-line services underpinned by its monopoly in wireline and fixed-broadband. They also reflect its number two position in mobile and its evolving share in paid-TV, making the company one of two ‘quadruple-play’ providers in the country. SLT’s ratings benefit from its strong balance sheet with low funds flow from operations (FFO) adjusted net leverage of 0.64x at end-2012.

Sovereign constraints: SLT’s IDRs are constrained by Sri Lanka’s IDRs, due to the government directly and indirectly holding a majority stake in SLT. Malaysia’s Usaha Tegas – which owns 44.9% of SLT – does not have any special provisions in its shareholder agreement to dilute the government’s significant influence over SLT. Therefore any future changes to Sri Lanka’s IDRs will lead to a corresponding change to SLT’s IDRs.

Revenue grows, margins fall: SLT’s revenue grew 10% in 2012, driven by strong growth in mobile and broadband operations, which was partly offset by weak performance in its fixed-wireless segment. Revenue growth was also supported by a sharp weakening in the exchange rate in early 2012, which increased SLT’s foreign currency revenue in local currency terms. Operating EBITDAR margins fell to 31.9% in 2012 from 33.3% in 2011, due to increased competition and cost inflation. Fitch expects moderate pressure on SLT’s EBITDAR margins to continue in 2013, particularly if domestic energy tariffs increase.

Network investments rise: SLT will continue to invest heavily in the expansion of its broadband and mobile infrastructure in 2013 and 2014, with capex/revenue expected to increase to about 42% in 2013 (2012: 33%). This includes SLT’s plans to provide broadband at speeds of over 20Mbps to over 90% of its wireline subscriber base by end-2014. This is likely to turn free cash flow (after capex and dividends) negative in 2013 and result in higher financial leverage. However, Fitch does not expect negative rating action given SLT’s ample rating headroom.

Strong liquidity: SLT’s liquidity is strong in both local and foreign currencies. Its cash reserves (end-2012: in excess of LKR4.9bn) continue to exceed current maturities. SLT also has high FFO coverage of interest costs and operating lease rentals (end-2012: 14.3x), partly due to most of its debt (which includes long-term vendor financing) being denominated in foreign currency. SLT’s annual foreign currency earnings are sufficient to cover interest and principal payments on its foreign currency debt through to 2015.

Rating Sensitivities
Negative: Future developments that may individually, or collectively, lead to negative rating action include:

-A downgrade in Sri Lanka’s IDRs will result in a corresponding action on SLT’s IDRs. However, the sovereign is currently on Stable Outlook, indicating that no such rating change is expected over a one- to two-year period.

-FFO-adjusted net leverage increasing above 2.5x on a sustained basis. Fitch currently expects FFO- adjusted leverage to remain below 1.5x in the medium term.
Positive: Future developments that may individually or collectively lead to a positive rating action include:

-An upgrade in the sovereign IDRs is likely to lead to a corresponding upgrade in SLT’s IDRs. However, the sovereign is currently on Stable Outlook, indicating that no such rating change is expected over a one- to two-year period

-As the ratings are currently constrained by government ownership, the weakening of links with the sovereign could result in SLT’s Local Currency IDR being upgraded above Sri Lanka’s Local Currency IDR. However, SLT’s Foreign Currency IDR will remain constrained by the Country Ceiling of ‘BB-’

http://www.news360.lk/business-finance/news-debt-rating-sri-lanka-22-03-2013-telecom%E2%80%99s-rating-affirmed-at-bb-stable-by-fitch-907686

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum