Fitch Ratings has affirmed SriLankan Airlines Limited’s (SLA) US dollar-denominated government guaranteed bonds at ‘B+’.
The airline’s bonds are rated at the same level as SLA’s parent, the government of Sri Lanka (GoSL; B+/Negative) due to the unconditional and irrevocable guarantee provided by the government. GoSL held 99.5% of SLA as at end-2016 through direct and indirect holdings.
Fitch has rated SLA’s US dollar-denominated bonds at the same level as the sovereign due to the unconditional and irrevocable guarantee provided by the government. The rating is not derived from its issuer’s standalone credit profile and thus is not comparable to its industry peers. Developments that may, individually or collectively, lead to negative rating action include a downgrade of the sovereign rating.
Developments that may, individually or collectively, lead to positive rating action include an upgrade of the sovereign rating For the sovereign rating of Sri Lanka, the following sensitivities were outlined by Fitch in its Rating Action Commentary of February 29, 2016.