Fitch Ratings has affirmed Sri Lanka-based Lion Brewery (Ceylon) PLC’s (Lion) National Long-Term Rating of ‘AA-(lka)’ with a Stable Outlook.
Fitch has also affirmed the National Long-Term Rating of ‘AA-(lka)’ on Lion’s outstanding senior unsecured debentures. Fitch has maintained a Stable Outlook despite Lion’s weakening credit metrics due to the one-time disruption to production caused by floods in May 2016. Fitch believes the brewery is well-placed to recover from the floods and expects its financial profile to remain consistent with its rating.
Lion’s revenue declined 52% yoy in 1QFY17 due to lost inventory and a temporary manufacturing halt caused by the floods. The company is importing beer until local production recommences in late 2016 to mitigate the loss, but this is limited to its main product categories and may negatively affect margins due to the higher costs of imports. Losses on fixed-assets, stock and business interruption are covered by insurance, but the quantum of the claim or when Lion will receive payment is not yet determined.
Fitch has also affirmed the National Long-Term Rating of ‘AA-(lka)’ on Lion’s outstanding senior unsecured debentures. Fitch has maintained a Stable Outlook despite Lion’s weakening credit metrics due to the one-time disruption to production caused by floods in May 2016. Fitch believes the brewery is well-placed to recover from the floods and expects its financial profile to remain consistent with its rating.
Lion’s revenue declined 52% yoy in 1QFY17 due to lost inventory and a temporary manufacturing halt caused by the floods. The company is importing beer until local production recommences in late 2016 to mitigate the loss, but this is limited to its main product categories and may negatively affect margins due to the higher costs of imports. Losses on fixed-assets, stock and business interruption are covered by insurance, but the quantum of the claim or when Lion will receive payment is not yet determined.
www.dailynews/lk
No comments:
Post a Comment