Feb 18, 2011 (LBO) – Fitch Ratings has confirmed Sri Lanka Telecom’s (SLT) long-term foreign currency rating at ‘B+’ with a positive outlook, a statement said. The agency has also confirmed SLT’s long-term local currency rating at ‘BB-‘ and its national long-term rating at ‘AAA(lka)’ with a stable outlook for both.
The foreign currency rating of SLT, which is 51 percent owned by the government, is capped by Sri Lanka’s country ceiling of ‘B+’ and the positive outlook reflects that on the sovereign rating.
“SLT’s ratings continue to be supported by its position as the fixed-line incumbent in Sri Lanka and by its adequate market share, through subsidiary Mobitel, in a moderately growing mobile telecom market,” Fitch said.
At end-September 2010, the firm had 40.6 percent and 24.4 percent of the country’s fixed line and mobile subscribers.
“The company also has a dominant market share of international long-distance and IP (internet protocol) and data-related services,” Fitch said.
SLT’s consolidated revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) improved four percent and eight percent during the ni