Tidal Bells

Fitch Ratings Lanka says it may review Sri Lanka Telecom’s credit rating, though the Rs. 750 mn tidal wave repair bill does not alter its credit profile. Fitch Ratings Lanka says it may review Sri Lanka Telecom’s credit rating, though the Rs. 750 mn tidal wave repair bill does not alter its credit profile. The review is due to possible bad debts arising from one of its international calling cards units, unsettled management structure to beat off rivals and higher investments, Fitch said Thursday.

International rating agency Standard & Poor’s Ratings Services on last Tue. revised SLT’s rating outlook to negative from stable.

SLT has a B+ rating for its foreign currency debt and a BB- rating for its local debt from S&P.

During its US$ 100 mn bond issue, SLT also picked up a B+ rating with stable outlook from Fitch Ratings International.

Local telecom operators’ infrastructure facilities took a beating when the Asian tsunami virtually wiped off the east and southern coastal belts of Sri Lanka last week.

While restoration of connections is underway, the capital cost of the damage to the sector is currently estimated to be around a bi