Tele Rating

August 9, 2007 (LBO) – Standard and Poor's (S&P) has upgraded the outlook on Sri Lanka Telecom (SLT) from negative to stable while affirming its 'B+' foreign currency and 'BB-' local currency rating. "The rating on SLT continues to reflect the long-term rating on the sovereign given its government ownership and its exposure to domestic revenues and regulated sector," S&P Rating Services said.

"The outlook is in line with that on the 'B+/B' foreign currency and 'BB-/B' local currency sovereign credit rating on the Democratic Socialist Republic of Sri Lanka."

S & P upgraded the outlook of Sri Lanka's sovereign rating to stable from negative.

SLT is Sri Lanka's largest fixed access operator and only wireline licensee. It also owns a mobile subsidiary and stakes in international submarine cables.

SLT is managed by Japan's NTT. But the Japanese firm is looking to sell up to 25 percent of its stake to Malaysia's Usaha Tegas group.

The deal is currently under judicial review after a former government minister took it to court.

Another court decision is due on its tariffs following a protest by a consumer organization.

Its revenues have received a boost with the roll out