Fitch downgrades Sri Lanka Telecom

Fitch Ratings said it downgraded Sri Lanka Telecom plc's long-term foreign- and local-currency issuer default ratings to B from B+.

The outlook is stable.

The agency said it affirmed the company's national long-term rating at AAA(lka) with a stable outlook.

Fitch also said it affirmed the national rating at AAA(lka) on the 7 billion in Sri Lankan rupee debt program.

The action follows a similar downgrade of Sri Lanka's sovereign ratings, the agency said.

The ratings are constrained by Sri Lanka's issuer default ratings as the state holds a majority stake in Sri Lanka Telecom, Fitch said.

The agency said the company's standalone credit profile is stronger than that of its owner, reflecting the company's market-leading position in fixed-line services and second-largest position in mobile.

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