SLT’s standalone credit profile is stronger: Fitch Ratings

• SLT’s ratings are influenced by Sri Lankan  sovereign’s weak credit profile

Despite the downgrading of Sri Lanka’s credit ratings, Fitch Ratings has also stated that Sri Lanka Telecom’s Standalone  Credit Profile (SCP) is stronger than that of the state, reflecting the  company’s market leadership in fixed-line services and second-largest  share in mobile, its ownership of an extensive optical fibre network and  a strong financial profile.  

“SLT’s ratings are influenced by Sri Lankan  sovereign’s weak credit profile, under Fitch’s Parent and Subsidiary  Linkage (PSL) Rating Criteria,” the Fitch Ratings stated.  

Fitch Ratings on Thursday downgraded the National Long-Term  Ratings of 10 Sri Lankan banks, Ceylon Electricity Board (CEB), Sri  Lanka Telecom PLC (SLT) and Sri Lanka-based Lakdhanavi Limited.   

Accordingly, Fitch Ratings has downgraded the National  Long-Term Ratings of 10 Sri Lankan banks following the recent sovereign  downgrade and recalibration of the agency’s Sri Lankan national rating  scale.