Fitch affirms Srilankan’s government guaranteed bonds at ‘B/stable’

Fitch Ratings yesterday affirmed Srilankan Airlines Limited’s (SLA) US $ 175 million 5.3 percent government guaranteed bonds due 2019.

The airline’s bonds are rated at the same level as SLA’S parent, the government of Sri Lanka (B/ Stable) due to the unconditional and irrevocable guarantee provided by the government.

The State held 99.5 percent of SLA as at end-2018 through direct and indirect holdings.

Fitch said the rating is not derived from its issuer’s standalone credit profile, and is therefore not comparable with that of industry peers.