Lankapage Logo CP 22 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Fitch affirms Sunshine Holdings at ‘AA+(lka)’; Outlook Stable
Thu, May 12, 2022, 08:32 am SL Time, ColomboPage News Desk, Sri Lanka.

May 12, Colombo: Fitch Ratings has affirmed Sri Lanka-based Sunshine Holdings PLC’s National Long-Term Rating at ‘AA+(lka)’. The Outlook is Stable.

The affirmation reflects Sunshine’s increasing exposure to the defensive healthcare segment and the export market through measured acquisitions, while maintaining a strong financial profile. Sunshine’s rating reflects its leading positions in healthcare, fast-moving consumer goods, such as packaged tea and confectionary, as well as in protected sectors, such as palm oil plantations.

The rating is constrained by Sunshine’s small operating scale and a more moderate competitive position versus higher-rated peers. The company’s scale will temporarily rise largely on account of high global palm oil prices, but we expect this to moderate over the medium term.

The Stable Outlook reflects our view that Sunshine will be able to navigate Sri Lanka’s weak economy in the next 12-18 months, supported by an exceptionally strong balance sheet and defensive cash flows.

KEY RATING DRIVERS

Acquisitions to Boost Scale: Sunshine’s acquisitions in healthcare and in the export market in the second half of the financial year ended March 2022 (FY22) increased its exposure to defensive cashflows. The increase in Sunshine’s stake in Akbar Pharmaceuticals (Private) Limited (ABPL) to 100% provides Sunshine with manufacturing and R&D capabilities in healthcare, which will reduce its reliance on imports. Prospects for domestic manufacturing are high as the government seeks to reduce imports to save on foreign exchange.

Meanwhile Sunshine will benefit from the acquisition of Sunshine Tea (Private) Limited (STL), a tea exporter, with its foreign-currency earnings supporting the healthcare and consumer segments’ import requirements to an extent. We expect STL to account for around 15% of Sunshine’s revenue in FY23.

Full report

 

ColomboPage - Recent 10 Stories ::
Tanker owners request IGP to provide security to bowsers delivering fuel
-- [6 hours ago]
ADB, AIIB, WB to support Sri Lanka under a joint action plan to mitigate impact of the economic crisis
-- [7 hours ago]
$ 7 million will be paid for two gas ships Monday - Litro Chairman
-- [8 hours ago]
CSE Director Board appoints a new Chairman
-- [8 hours ago]
Police nab two suspects with 450 kilograms of Kerala cannabis
-- [9 hours ago]
Public urged not to block roads on GCE O/L examination days
Five more SLFP members to join the government
Public protest at Galle Face continues for the 43rd day
A proposal from the Speaker to the Prime Minister to revive the economy
CID records statements from senior police officers, including the IGP and the STF chief

Copyright © 2000, 2020 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.