Fitch affirms Kotagala at CC(lka)

Fitch Ratings said it affirmed Kotagala Plantations plc's national long-term rating at CC(lka) and the national rating on its outstanding senior secured debentures at CC(lka).

Fitch said the affirmation reflects the company's continued weak liquidity profile despite improved revenue and EBITDA, asset disposals and restructuring of bank facilities over the previous 12 months.

Kotagala had 27 million in Sri Lankan rupee of unrestricted cash and no unused credit facilities as at end-March 2018 (FY18) to meet 671 million in Sri Lankan rupee of short-term debt falling due in the next 12 months.

There is a significant risk that Kotagala may not be able to meet its obligations as they fall due through internally generated cash flow, the agency explained.

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