CEAT Kelani Holdings has been assigned a National Long-Term rating of ‘AA+ (lka)/Stable’ by Fitch Ratings, reflecting the Company’s market position as the largest manufacturer and distributorof pneumatic vehicle tyres in Sri Lanka.
Notifying the Company of the rating, Fitch said CEAT Kelani Holdings has a strong financial profile with low leverage and solid liquidity. “Fitch expects CEAT Kelani Holdings’ cash to continue to exceed debt in the next few years,” the agency said. The AA+ credit rating is the second highest rating assigned by Fitch Ratings to reflect an entity’s ability to meet financial commitments. A key ratings driver for CEAT Kelani Holdings was the Company’s leading market position with an overall market share of around 50 per cent.
Fitch said it expects CEAT Kelani Holdings’ revenue to rise in FY22 as it believes competition from imports will not swiftly return to levels prior to the pandemic.