Fitch Ratings has affirmed Sri Lanka Telecom PLC’s (SLT) National Long-Term Rating at ‘AA-(Ika)’. The Outlook is Stable. We have also affirmed the ‘AA-(Ika)’ national rating on the company’s Rs7 billion of senior unsecured debt.
SLT’s ratings are constrained by the sovereign’s ratings as per Fitch’s Government-Related Entities Rating Criteria, as the state holds a majority stake in SLT directly and indirectly, and exercises significant influence on its operating and financial profile.
SLT’s unconstrained standalone credit profile is stronger than that of the government of Sri Lanka, reflecting the company’s market leadership in fixed-line services and second-largest position in mobile, its ownership of an extensive optical-fibre network, and a solid financial profile.
Constrained by sovereign: SLT’s ratings are constrained by the sovereign’s, as the state holds a majority stake in SLT directly and indirectly, and exercises significant influence on its operating and financial profile.
SLT’s second-biggest shareholder, Malaysia’s Usaha Tegas Sdn Bhd with a 44.9% stake, has no special provisions in its shareholder agreement to dilute the government’s significant influence over SLT.
