Monday, 2 March 2015 00:00
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John Keells Holdings Plc (JKH) has decided to terminate the mandate given to Fitch Ratings Lanka Ltd., with effect from 27 March 2015.
JKH said it believes a local rating is not warranted at this juncture of time considering the Company’s current debt funding sources which are predominantly in foreign currency.
“However, if and when the need arises, the Company will consider obtaining an international credit rating,” JKH said. In September last year, JKH was downgraded by Fitch to AA+ from AAA with a stable outlook.
Fitch linked its action to reflect the what it viewed as a deterioration in JKH’s business risk profile, driven by the weakening competitive position of its key dividend-paying associate, South Asia Gateway Terminals as well as Fitch noting the JKH’s $ 650 million integrated resort project was unlikely to start generating income until FY19.
