Fitch Ratings has taken rating action on non-financial corporates following the recalibration of its Sri Lankan National Rating scale to reflect changes in the relative creditworthiness among the country's issuers following the downgrade of the sovereign rating to 'B-' from 'B' on 24 April 2020.

The Outlook on Sri Lanka's Long-Term Issuer Default Rating (IDR) is Negative. For details, see "Fitch Recalibrates Sri Lanka National Rating Scale", dated 28 May 2020, at www.fitchratings.com/site/pr/10124103.

Fitch has revised the National Long-Term Ratings of three Sri Lankan corporates:

- Hemas Holdings PLC revised to 'AAA(lka)'/Stable from 'AA-(lka)/Stable;

- Lion Brewery (Ceylon) PLC revised to 'AAA(lka)'/Stable from 'AA-(lka)'/Stable; and

- Sunshine Holdings PLC revised to 'A(lka)'/Stable from 'A-(lka)'/Stable.

At the same time, Fitch affirmed National Long-Term Ratings of Singer (Sri Lanka) PLC (BBB+(lka)/Negative), Sri Lanka Telecom PLC (SLT, AA+(lka)/Negative), DSI Samson Group (Private) Limited (DSI, BBB(lka)/Stable), Abans PLC (BBB+(lka)/Negative), Ceylon Electricity Board (CEB, AA+(lka)/Negative), Distilleries Company of Sri Lanka PLC (DIST, AAA(lka)/Stable), Melstacorp PLC (AAA(lka)/Stable) and Dialog Axiata PLC (AAA(lka)/Stable).

In addition, Fitch maintained the Rating Watch Negative (RWN) on Sierra Cables PLC (BB(lka)).

The affirmations reflect the view that the above ratings are unaffected, following the recalibration of the Sri Lankan national scale ratings.

National scale ratings are a risk-ranking of issuers in a particular market designed to help local investors differentiate risk. Fitch's Sri Lankan national scale ratings are denoted by the unique identifier '(lka)'.

Fitch adds this identifier to reflect the unique nature of our Sri Lankan national scale. National scales are not comparable with Fitch's international ratings scales or with other countries' national rating scales.

KEY RATING DRIVERS

Hemas Holdings PLC:

The revision of Hemas' National Long-Term Rating reflects the recalibration of the Sri Lankan national scale ratings as well as our view that Hemas will maintain its leverage - defined as net debt/EBITDA - in line with a 'AAA(lka)' rating. Hemas' rating reflects its increasing exposure to defensive healthcare and consumer goods, while gradually exiting cyclical non-core sectors such as leisure. The rating also benefits from Hemas' exceptionally strong balance sheet and high rating headroom before the economic downturn. We estimate steady leverage of around 0.4x-0.5x in the financial year ended March 2020 (FY20) and FY21 compared with the 3.5x leverage threshold for the current rating.

Stable Healthcare Revenue During COVID-19: We expect Hemas' pharmaceutical sales to remain stable throughout FY21 due to defensive demand and the government classifying pharmaceutical imports as essential goods, even as it imposed restrictions on a wide range of other imports to preserve foreign exchange. Hemas continued its distribution operations during the country's lockdown starting in March through third-party pharmacies, delivery partners and its own delivery platform. The business also has adequate inventory, providing a buffer against any supply shortages although supplies have so far held up. We expect Hemas to mitigate the margin pressure stemming from currency devaluation owing to its contractual arrangements with global suppliers, cost efficiencies and price revisions.

The company's domestic pharmaceutical-manufacturing business was disrupted in the early part of Sri Lanka's lockdown due to social distancing requirements. However, Hemas says production capacity utilisation is improving and should normalise with the lifting of the lockdown in early May. We expect demand for domestic pharmaceutical manufacturing to increase in the medium term as Sri Lanka seeks to reduce foreign-exchange outflows. There is also increased demand for contract manufacturing on behalf of foreign pharma companies to help mitigate the risk stemming from domestic price controls on imported pharmaceuticals..

Consumer Revenue to Improve: Sales disruptions in Hemas' consumer segment, which accounts for around 45% of group EBIT and is based mainly in Sri Lanka, have been limited across most product categories since the lockdown. The closure of grocery stores nationwide in early FY21 affected Hemas' customer reach, but stronger sales through supermarkets and online platforms mitigated the impact. We expect the distribution network to be fully operational by mid-2020 and sales to normalise from 2HFY21, assuming the country-wide lockdown will ease gradually from May. We do not expect a significant weakening in demand for the consumer segment, despite slower economic activity, due to its essential nature and its products' low ticket value.

The segment's production facilities were closed or were operating at lower utilization levels due to social distancing for the most part of 1QFY21 but are operational at present, subject to social distancing constraints on production capacity. The segment was able to manage the impact from closures as it had sufficient finished goods inventory Hemas' Bangladesh operations will remain muted for most of FY21 as the product portfolio is less defensive.

Biggest Impact on Leisure: Hemas' 300-room hotel chain would be the hardest hit segment from the pandemic due to the indefinite closing of Sri Lanka's borders and global travel restrictions. Hotels currently generate minimal revenue, which is insufficient to cover the high fixed costs. We expect a continued cash burn, even with a minimal cost structure, until tourism picks up, which could be at least 12 months away. However, the impact on Hemas' cash flow should be manageable as the sector accounts for less than 5% of consolidated revenue, and we expect its operating losses from hotels to lower the group EBIT margin by less than 100bp in FY21.

Margins to Fall in FY21: We expect Hemas' EBIT margin to contract to 5.5% in FY21, from around 8% historically, amid lower sales and near-term cost pressures in the consumer segment and hospitals, and losses in leisure, mitigated by the company's cost-cutting measures. Cost-saving measures across the group include pay cuts to preserve cash. We expect margins to recover to historical levels from FY22, helped by a strong rebound in the consumer segment's volume, improved capacity utilisation in hospitals and the logistics business, and a slow but gradual pick-up in leisure.

Low Leverage: We expect Hemas' net debt/EBITDA to remain comfortably below 1.0x over the next two years (9MFY20: 0.9x) amid lower capex and dividends to preserve cash, despite our expectations of weak operating performance in FY21. We expect Hemas' cash flow from operations to cover its capacity expansion and dividends over the next few years without depending on external funding. The company says its medium-term expansion would focus mostly on its core businesses with the ability to leverage on the existing infrastructure without significant capital outlay.

Lion Brewery (Ceylon) PLC:

The revision of Lion's National Long-Term Rating reflects the recalibration of the Sri Lankan national scale ratings as well as Fitch's assessment that Lion will maintain its leverage commensurate with a 'AAA(lka)' rating level. Lion's rating reflects of its leading market position in the domestic beer industry, which is protected by high entry barriers from the regulatory ban on media advertising, its well-established brand and retail coverage.

Coronavirus Disruption: Alcoholic beverage companies such as Lion are exposed to the disruption stemming from social-distancing measures - in effect since March 2020 - to help contain the spread of the virus. We expect Lion's overall sales volumes to decline by around 22% yoy in FY21 as a result of the movement and socialisation restrictions. Aside from a weakening economy and lower domestic consumption, Lion's mild beer category will also be affected by lower tourist arrivals in 2020 and see a more significant drop in volume compared with the strong variants. Fitch expects Lion to see a strong recovery once social-distancing measures are eased given the increased socialisation of people. .

Strong Financial Risk Profile: Lion's financial profile is strong with Fitch expecting leverage to remain below 1.0x despite the government's social-distancing measures. This is even after assuming, on a conservative basis, that Lion will pay out all of its free cash flow as dividends, while maintaining capex levels of around LKR1.3 billion over the rating horizon of FY20-FY23.

Temporary Weakening in EBITDA Margin: Our rating case assumes a contraction in the EBITDA margin by around 400bp to 29% in FY21 due mainly to lower sales volumes. Fitch expects Lion to lower its administration and distribution costs, by around 9% in FY21 amid the temporary factory closures and lower sales volumes, thereby helping Lion to contain the margin decline. We expect the EBITDA margin to improve gradually, to 31% in FY22, as sales volumes begin to recover.

Linkages with Parent: Fitch rates Lion on its standalone strength due to its financial independence from its ultimate parent, Carson Cumberbatch PLC, and the presence of an influential minority shareholder - Carlsberg Brewery Malaysia Berhad, which owns 25% of Lion and is in-turn a subsidiary of Carlsberg Brewery A/S (BBB+/Stable). We therefore assess the linkages between Lion and Carsons as weak, as defined in Fitch's Parent Subsidiary Rating Linkage Criteria. Lion has a stronger credit profile than Carsons. The two companies operate as separate entities, with separate funding arrangements and separate liquidity management. There are also no cross-default clauses or cross-guarantees between the debt of the two entities.

Adequate Production Capacity: Lion has sufficient brewing capacity for the next few years, with plant capacity utilisation at 64% in FY19. Lion expanded its production capacity between FY14-FY16, which drove the high capex of around LKR4 billion a year, or 20% of revenue. We expect capex to moderate to around LKR1.3 billion a year in the next two years.

High Regulatory Risk: Domestic alcoholic-beverage producers face frequent revisions to excise duties, which can cause near- to medium-term operating cash flow volatility. Spirits are taxed 22% higher per proof litre compared with beer, after taxes on beer were increased by 12.5% in March 2019. The current tax regime is more consistent with the practice that existed between November 2015 and November 2017, when beer was temporarily taxed higher than spirits per proof litre. Fitch expects the current excise tax regime to prevail over the medium term as it encourages the consumption of drinks with lower alcohol content and has been the norm historically. Fitch believes any further tax increases will be gradual, considering the importance of the industry to government revenue. Excise duties from alcoholic-beverage makers made up 7% of government tax revenue in 2018.

Sunshine Holdings PLC:

The revision of Sunshine's National Long-Term Rating reflects the recalibration of the Sri Lankan national scale ratings. Sunshine's 'A(lka)' rating is also reflective of its leading positions in defensive sectors such as healthcare, fast-moving consumer goods such as packaged tea retailing, and protected sectors such as crude palm oil. We expect Sunshine to maintain its leverage commensurate with an 'A(lka)' rating in the medium term, despite vulnerability of some of its segments to the coronavirus pandemic.

Pandemic-Related Earnings Drop: Fitch expects the financial impact stemming from social-distancing measures, and the ensuing economic downturn, to be manageable for Sunshine due to its exposure to defensive sectors. Fitch expects the healthcare segment revenue to decline by around 5% yoy in FY21, stemming mainly from its pharmacies due to temporary store closures and less consumer footfall. However, we expect the pharmaceutical distribution and medical device sub-segments to see their revenue remain quite resilient in light of the essential nature of their products. Healthcare retail is expected to pick up in late FY21, as social-distancing measures begin to ease.

Fitch expects the palm oil segment revenue to remain flat in FY21 on a decline in cultivation in the 1HFY21, as a result of labour shortages at plantations. Nevertheless, domestic demand for palm oil is expected to remain resilient, due to lack of domestic supply brought about by regulatory pressures and high tariffs on imported palm oil. Fitch expects the consumer goods segment, which is comprised of branded tea retailing, to see a sharp fall by around 15% yoy in FY21 due to disruptions in the general retail trade channels.

Low Financial Risk Profile: We expect Sunshine's leverage to remain below 1.0x over the rating horizon of FY20-FY23. Fitch expects a slight increase in leverage from an estimated 0.8x in FY20 to 1.0x in FY21, as a result of our expectation in lower profitability, and to improve to 0.5x in FY22 upon a recovery in earnings. Fitch expects Sunshine to pay dividends in FY21, however to defer some of its discretionary capex plans at least till next year- as a means to conserve cash, which should help contain any increase in its leverage.

Weaker Profitability in FY21: We expect Sunshine's EBIT margins to contract by around 230bps yoy to 9% in FY21 - as a result of weaker profitability stemming from the limited ability to cut costs owing to the low demand environment. The consumer goods segment - which was already facing margin pressure due to competition prior to the pandemic, is expected to see its EBIT margin decline by around 170bps yoy to 6% in FY21, owing to less sales volumes. Sunshine's healthcare EBIT margins to also contract slightly by around 100bps yoy to 7% in FY21, mainly stemming less footfall in the retail channel and forex pressures in pharmaceutical distribution - where price increases remain regulated.

Sunshine's agriculture segment EBIT margins are expected to decline by around 400bps yoy to 27% in FY21 - mainly due to subdued palm oil operations during the 1HFY21. Fitch expects Sunshine's dairy farm to only breakeven from FY22 onwards, due to increased volume as the number of milking cows increase.

Increasing Palm Oil Yield: Fitch expects Sunshine's yield per hectare to increase in the medium term, providing adequate revenue visibility over the FY20-FY23 rating horizon. Palm oil is expected to contribute around 30% to Sunshine's cash flow over FY20-FY23. The Sri Lankan government banned the planting of palm oil trees in November 2019, but this is not likely to have a material impact on Sunshine's cash flow during FY20-FY23. This is because the average age of Sunshine's palm oil plantations is 11 years and around 56% of the cultivated area will remain in the prime age of 11-16 years over the same period. Around 8% of the mature planted area is subject to the ban on replanting.

Volatility in Power Generation: Fitch expects the power generation segment to contribute around 10% to group EBITDA in the medium term and provide a degree of diversification to the group's cash flow generation. However, uncertain weather patterns continue to be a risk as 90% of power-generation cash flow is from its hydropower plants. We expect Sunshine to continue investing in their energy segment in FY21.

DERIVATION SUMMARY

Hemas Holdings PLC and Lion Brewery (Ceylon) PLC:

Hemas has strong exposure to defensive healthcare and consumer sectors, catering to diversified end-markets, which account for around 85% of its EBITDA. It is rated at the same level as Lion, whose rating reflects its dominant position in the local beer industry, helped by high entry barriers and a strong EBITDA margin. We expect Hemas to maintain leverage at the same level as Lion in the medium term.

Both Hemas and Lion are rated at the same level as leading conglomerate Melstacorp, whose rating reflects its dominant market position in spirits, with a share of about 70% in the domestic alcoholic-beverage market, and a substantially higher EBITDA margin supporting strong free cash-flow (FCF) generation. Melstacorp's stronger FCF generation than Hemas and Lion is counterbalanced by its aggressive expansion policy compared with Hemas' and Lion's more conservative approach.

Sunshine Holdings PLC:

Sunshine's business risk profile benefits from defensive cash flows from pharmaceuticals and healthcare products, consumer goods, and the protected domestic palm oil industry. Sunshine's cash flows are therefore more stable through economic cycles than rating peers Singer and Abans, the two largest consumer durables retailers. Demand for Singer's and Abans' products is cyclical and they are also currently facing regulatory pressures from import restrictions. Sunshine also has a much better financial risk profile, with low leverage and better liquidity, which more than offset its smaller operating scale and leads to a two-notch higher rating compared with Singer and Abans.

For the key rating drivers, derivation summaries, rating sensitivities and liquidity analysis of Dialog, Singer, Abans, DSI and Sierra, please refer to the previous rating action commentaries via the following links:

- "Fitch Affirms Sri Lanka's Dialog Axiata at 'AAA(lka)'; Outlook Stable", dated 31 March 2020, at www.fitchratings.com/site/pr/10116091;

- "Fitch Downgrades Singer (Sri Lanka) to 'BBB+(lka)' on Coronavirus Pandemic; Outlook Negative", dated 16 April 2020, at www.fitchratings.com/site/pr/10117745;

- "Fitch Revises Outlook on Abans to Negative on Coronavirus Stress; Affirms 'BBB+(lka)' Rating", dated 10 April 2020, at www.fitchratings.com/site/pr/10117730;

- "Fitch Revises Outlook on DSI Samson Group to Stable; Affirms 'BBB(lka)'", dated 6 May 2020, at www.fitchratings.com/site/pr/10121123; and

- "Fitch Downgrades Sierra Cables PLC to 'BB(lka)' on Coronavirus Risks; Places on RWN", dated 21 April 2020, at www.fitchratings.com/site/pr/10119061.

For the key rating drivers, derivation summaries, and liquidity analysis of Melsta, DIST, SLT and CEB, please refer to the following previous rating action commentaries:

- "Fitch Affirms Melstacorp and Distilleries at 'AAA(lka)'; Outlook Stable", dated 4 November 2019, www.fitchratings.com/site/pr/10100404;

- "Fitch Affirms Sri Lanka Telecom at 'AA+(lka)'; Outlook Negative", dated 24 January 2020, at www.fitchratings.com/site/pr/10104610; and

- "Fitch Revises Outlook on Ceylon Electricity Board to Negative; Affirms at 'AA+(lka)'", dated 23 December 2019, at www.fitchratings.com/site/pr/10106212.

Fitch has revised the rating sensitivities applicable to Melsta, DIST, SLT and CEB as a result of the recalibration of the Sri Lankan National Ratings scale. The revised sensitivities for these issuers can be found in the relevant section below.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Our Rating Case for the Issuers

Hemas Holdings PLC:

- Revenue to decline by around 9% in FY21, despite a 80% decline for hotels and a 5% drop for the consumer segment mitigated by a 2% increase in healthcare.

- Revenue to rebound by 14% in FY22, helped by strong growth in pharmaceutical distribution and manufacturing, improving demand for consumer products and logistics services, with only marginal growth in leisure sector revenue.

- EBIT margin to fall to 5.5% in FY21 amid COVID-19. EBIT margin to recover from FY22 to historical levels of around 8.0%.

- Capex to reduce to around LKR1.0 billion in FY21 to cover mostly maintenance capex, and increasing to around LKR2.0 billion per annum over FY22-calender 2023 once the company resumes its planned expansion.

- Dividend payout of around LKR500 million in FY21, increasing to LKR1.0 billion from FY22 once the operating environment stabilises.

Lion Brewery (Ceylon) PLC:

- Revenue growth of around 3% in FY20, with a steep decline of around 20% in FY21 stemming from the coronavirus outbreak.

- EBITDAR margin to narrow to 32% in FY20, from 35% in FY19, and then decline to 28% in FY21 due to lower sales volumes.

- Excise duty on strong and mild beer to increase by 9%, on average, per proof litre a year over FY20-FY23.

- Capex intensity to average around 6% of revenue a year over FY20-FY23. We have assumed the free cash flow generation to be paid as dividends, in the absence of a stated dividend policy.

- Working capital inflow of LKR800 million in FY21 due to less inventory holdings given the dampened demand environment. However, much of the proceeds would be used to settle working-capital related debt.

Sunshine Holdings PLC:

- Revenue to decline by 3.5% in FY20 due to the Hatton Plantation PLC divestiture, and increase by 4% in FY21 due to full ownership of the consumer goods-branded tea segment.

- EBITDA margin of 14% in FY20, narrowing to 12% in FY21 due to pandemic-related earnings disruption.

- Capex of around LKR600 million in FY21, increasing to around LKR1.0 billion in FY22, upon an improvement in the operating environment.

- Working-capital outflows to average around LKR400 million annually in the next few years to support growth in the healthcare segment.

- Dividend payout of 30% of net Income over FY20-FY23.

RATING SENSITIVITIES

Hemas Holdings PLC:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- There is no scope for an upgrade, as the company is already at the highest rating on Sri Lanka's national rating scale.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- Group net debt/EBITDA rising above 3.5x on a sustained basis

- Group EBITDA/interest cover falling below 3.0x on a sustained basis

- Any deviation from the company's conservative approach to new investment

Lion Brewery (Ceylon) PLC:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- There is no scope for an upgrade, as the company is already at the highest rating on Sri Lanka's national rating scale.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- An increase in Lion's leverage - total debt net of cash/EBITDA - over 4.0x for a sustained period.

- A decrease in EBITDA/interest coverage to less than 2.8x on a sustained basis.

Sunshine Holdings PLC:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- Increased scale of operations while maintaining a healthy financial profile.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- An increase in Sunshine's leverage - total net debt (including proportionate consolidation of Sunshine Wilmar Private Limited/operating EBITDA - to more than 3.0x over a sustained period.

- Sunshine's EBITDA coverage of gross interest (including proportionate consolidation of Sunshine Wilmar Private Limited) falling below 2.5x over a sustained period.

- A weakening of the business profile as reflected in a deterioration in EBITDA margin to below 9% on a sustained basis.

Melstacorp PLC and Distilleries Company of Sri Lanka PLC:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- There is no scope for an upgrade, as the company is already at the highest rating on Sri Lanka's national rating scale.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- Consolidated financial leverage - measured as adjusted net debt/EBITDAR (including 51% consolidation of Aitken Spence but excluding Continental Insurance Lanka Limited) - increasing to over 4.5x for a sustained period.

- Group operating EBITDAR/interest paid + rent (including 51% consolidation of Aitken Spence but excluding Continental Insurance Lanka Limited), falling below 2.5x for a sustained period.

- A structural change in the domestic alcoholic-beverage industry that considerably weakens DIST's competitive position.

- A significant weakening of the business risk profile due to new investments in sectors that are less competitive or generate more volatile operating cash flow than the spirits business.

Sri Lanka Telecom PLC:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- A revision of our Outlook on Sri Lanka's Long-Term Foreign-Currency IDR to Stable from Negative.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- A downgrade in the Sri Lankan sovereign's Long-Term IDR may result in a downgrade on SLT's National Long-Term Rating.

Ceylon Electricity Board:

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- A revision of our Outlook on Sri Lanka's Long-Term Foreign-Currency IDR to Stable from Negative.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- A significant weakening of the strong linkages between the sovereign and CEB.

- A downgrade of the Sri Lanka's Long-Term IDR may result in corresponding action on CEB's National Long-Term Rating.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Hemas Holdings PLC:

Comfortable Liquidity Position: Hemas had about LKR6.8 billion of unrestricted cash at end-December 2019 to meet LKR7.4 billion of debt maturing in the next 12 months. Around LKR6.7 billion of its near-term maturities consist of short-term working capital lines, which we expect the banks to roll over as they are backed by LKR12 billion of net working capital with a healthy cash conversion cycle of around 65 days.

Hemas had unused uncommitted credit lines of LKR11.5 billion at end-December 2019, which also support liquidity. We expect most local banks to honour these uncommitted lines amid the current downturn in light of Hemas' healthy credit profile and defensive cash flows compared with many local corporates.

Lion Brewery (Ceylon) PLC:

Comfortable Liquidity: Lion had LKR9.2 billion in cash at end-3QFY20 to meet debt maturities of LKR7.5 billion falling due in the next 12 months, of which an estimated LKR5.0 billion are working capital lines backed by a net working-capital position of around LKR5 billion and a healthy cash conversion cycle of around 120 days. These should give banks comfort in rolling over these maturities. Lion also had undrawn uncommitted lines of around LKR9 billion at its disposal - which we expect banks to stand by given Lion's leading entrenched market position in the defensive alcoholic-beverage sector, thereby supporting near-term liquidity requirements.

Sunshine Holdings PLC:

Adequate Liquidity: Sunshine had LKR2.1 billion of unrestricted cash as of end-December 2019, compared with LKR2.2 billion of debt repayments falling due in the next 12 months. Around LKR1.5 billion of its near-term maturities consist of short-term working capital lines, which we expect banks to roll over as they are backed by around LKR3 billion of net working capital and a healthy cash conversion cycle of around 100 days.

Sunshine has sufficient cash on hand to meet contractual maturities amounting to around LKR700 million falling due in the next 12 months. Sunshine also has unused uncommitted credit lines of LKR1.6 billion, which also supports its medium-term liquidity visibility. Fitch expects banks to take comfort from Sunshine's leading market positions in defensive sectors, and stand by these facilities due to the temporary nature of the disruption.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

SLT's ratings are capped by Sri Lanka's sovereign rating, while CEB's ratings are equalised to that of the sovereign , as discussed in the Rating Sensitivities section.