Fitch downgrades SriLankan Airlines, SLT

Fitch Ratings on Wednesday downgraded the rating on SriLankan Airlines Ltd's US$175 million government-guaranteed bonds due in June 2019 to 'B' from 'B+, and also Sri Lanka Telecom.

This follows the downgrade of Sri Lanka's Long-Term Foreign and Local-Currency Issuer Default Ratings to 'B' with a Stable Outlook. The national carrier's bonds are rated at the same level as SLA's parent, the state of Sri Lanka, due to the unconditional and irrevocable guarantee provided by the state.

Fitch Ratings also downgraded Sri Lanka Telecom PLC's LongTerm Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B' from 'B+'. The Outlook is Stable.

The rating action follows Fitch's downgrade of Sri Lanka's LongTerm Foreign- and Local-Currency IDRs to 'B' from 'B+'