Fitch Ratings – Colombo – 29 Sep 2022: Fitch Ratings has affirmed the National Long-Term Ratings of Sri Lanka-based conglomerate, Melstacorp PLC, and its subsidiary, Distilleries Company of Sri Lanka PLC (DIST), at ‘AAA(lka)’. The Outlook is Stable.
Fitch equalises the rating of DIST, which has a stronger credit profile than its parent Melstacorp, to the consolidated profile of its parent, based on our Parent and Subsidiary Linkage Rating Criteria.
The ratings reflect Fitch’s view that Melstacorp’s credit profile will remain steady in the next 12-18 months amid Sri Lanka’s weak economy. This is supported by expanding foreign-currency earnings, defensive domestic cash flows in the core spirits business and a strong balance sheet.
We expect the group’s overseas leisure and maritime/logistics sector earnings to counterbalance challenges in the core spirits business.
