Fitch lowers Sunshine Holdings

Fitch Ratings said it downgraded Sunshine Holdings plc's national long-term rating to A-(lka) from A(lka).

The outlook is stable.

The downgrades reflect expectations that Sunshine's net leverage will remain higher than the level commensurate with a higher rating over the next three years, Fitch explained.

The higher leverage is due to the substantial increase in debt following Sunshine's acquisition of an additional stake in EMSPL from Tata Global Beverages for 2.9 billion in Sri Lankan rupee, the agency said.

The acquisition will increase Sunshine's ownership of EMSPL to 60% from 33.2%, Fitch said, and improve the fungibility of group cash flow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.