Fitch Ratings has affirmed Sri Lanka-based conglomerate Richard Pieris & Company PLC’s (RICH) National Long-Term rating at ‘A(lka)’ with a Stable Outlook.
Fitch has also affirmed the National ratings on RICH’s outstanding senior unsecured debentures at ‘A(lka)’.
RICH’s rating reflects the group’s strong diversification, market leadership in most end-markets and its established operations. Temporary challenges in Retail: We expect RICH’s supermarket chain, which is the second largest in Sri Lanka in terms of stores, to experience some weakness in the short term due to dampened consumer spending amid slower economic conditions.
Exports to drive growth: We expect RICH to increasingly focus on its export business, which benefits from the recovery in global markets and the depreciation of the local currency that makes local products more competitive overseas.
Slow recovery for Plantations: RICH’s plantation segment has recovered in the recent past as global prices have rebounded, but we do not believe it is sufficient to offset the structural decline in the sector stemming from continued supply-side pressures.