May 02 (LBO) – Fitch Ratings revised the outlook on Sri Lanka Telecom’s foreign currency debt to negative from stable, but said the rating of BB- remains unchanged. The revision followed a similar change in the outlook of the Sri Lanka’s sovereign rating.
Both Fitch and S & P changed the outlook on Sri Lanka’s sovereign rating from ˜Stable’ to ˜Negative’ as fighting between government forces and Tamil Tigers intensified and the country’s army commander was targeted by a suicide bomber.
But Fitch said SLT’s local currency long-term issuer default rating (IDR) remained unchanged and the AAA(lka) national long-term rating also remained unchanged.
œSLT’s foreign currency rating, which takes into account convertibility risk, is constrained by the sovereign foreign currency rating, Fitch said.
œSLT’s foreign currency rating, which takes into account convertibility risk, is constrained by the sovereign foreign currency rating. However, SLT’s Long-term Local Currency IDR better reflects the company’s stand-alone credit profile and
is not constrained by the sovereign rating, hence the Stable Outlook is maintained.