The diverse business entity in Sri Lanka with interests in almost all aspects of business and commerce, John Keells Holdings PLC reiterates that its current and expected financial strength is more than sufficient in meeting any unanticipated obligations.

In response to the news report that Fitch Ratings has downgraded John Keells Holdings PLC’s (JKH) National Long-Term Rating to ‘AA+(lka)’ from ‘AAA(lka)’, JKH states that its proactive steps taken during the last 10 years have borne fruit and have resulted in a balanced portfolio and a diverse stream of healthy cash flows.

While Fitch Ratings Lanka Limited has cited the weakening competitive position of JKH’s key dividend-paying associate, South Asia Gateway Terminals (SAGT) as one of the reasons for the deterioration in JKH’s business risk profile, the company says it is of the view that SAGT would benefit from the overall prospects for the port of Colombo where volumes are bound to increase in the medium term with the commissioning of deepwater berths in the south port.

JKH adds that South Asia Gateway Terminals’ current performance continues to be well above the Group’s hurdle rates while its current and expected financial strength is more than sufficient in meeting any unanticipated obligations.