Sri Lanka Lankem retains A-/P2 ratings

Feb 28, 2012 (LBO) – RAM Ratings Lanka has confirmed Lankem Ceylon PLC™s long- and short-term corporate credit ratings of A- and P2. RAM Ratings Lanka has also confirmed the A- long-term issue rating of Lankem™s 500 million rupee unsecured unsubordinated redeemable debentures.

“The outlook on the long-term ratings is stable,” a statement said. “The ratings are supported by its diversity in business operations, major market positions in most of its business lines, the resilient demand for agrochemicals, and adequate debt protection metrics.”

However, the rating agency said, the ratings are pressured by Lankem Ceylon’s exposure to the volatility in the plantation business and its vulnerability to fluctuations in raw material prices.

The full rating report follows:

RAM Ratings Lanka has reaffirmed Lankem Ceylon PLC™s (Lankem or the Group) long- and short-term corporate credit ratings of A- and P2 respectively. Concurrently, RAM Ratings Lanka has reaffirmed the A- long-term issue rating of Lankem™s LKR 500 million unsecured unsubordinated redeemable debentures (2010/2015).

The outlook on the l