May 22, 2013 (LBO) – Melsta Regal Finance Ltd, a unit of Distilleries Company of Sri Lanka has been rated ‘A+(lka) by Fitch Ratings, on the strength of its ‘AAA(lka)’ rated ultimate parent.
The full statement is reproduced below:
Fitch Rates Sri Lanka’s Melsta Regal Finance ‘A+(lka)’/Stable
Fitch Ratings-Colombo-21 May 2013: Fitch Ratings has assigned Sri Lanka-based Melsta Regal Finance Ltd (Melsta Regal) a National Long-Term rating of ‘A+(lka)’. The Outlook is Stable.
Rating Action Rationale
Melsta Regal’s rating reflects Fitch’s view that extraordinary support will be available from its ultimate parent, Distilleries Company of Sri Lanka PLC (DIST, AAA(lka)/Stable, 100% ownership) in case of need. This is based on its strong linkages with DIST and growing synergies with DIST group and related companies. Further details on DIST’s rating are available on www.fitchratings.com and www.fitchratings.lk.
The four-notch difference between the ratings of DIST and Melsta Regal reflects the latter’s limited strategic importance to the DIST group at present. Fitch will consider narrowing the notching-difference between the companies if Melsta Regal’s strat