Mar 22, 2013 (LBO) – Fitch ratings said it had confirmed a ‘BB-‘ rating of Sri Lanka Telecom with a stable outlook helped by its strong market leadership in fixed services and a number two position in mobile. “SLT’s ratings reflect its market-leading position in Sri Lanka’s fixed-line services underpinned by its monopoly in wireline and fixed-broadband,” Fitch said in a statement.
“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.”
Fitch said revenues grew 10 percent in 2012 with mobile and broadband growing strongly but fixed wireless was weak.
Revenue had also been helped by currency depreciation.
The full statement is reproduced below
Fitch Affirms Sri Lanka Telecom at ‘BB-‘/Stable
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-lead