DCSL’s financial stability further cemented with AAA Fitch Rating

Monday, 31 December 2012 00:00 - - {{hitsCtrl.values.hits}}

Fitch Ratings Lanka Ltd. has assigned the Distilleries Company of Sri Lanka PLC (DCSL) with an AAA rating (Stable Outlook), which verifies the financial stability of the company.

The DCSL Group, led by its flagship Distilleries Company of Sri Lanka PLC, manages one of the nation’s most successful, diversified blue chip portfolios spanning beverages, telecommunications, plantations, hotels, textiles, financial services, creative and media services and logistic services.

The DCSL Group is among the top five corporate conglomerates in Sri Lanka with assets in excess of Rs. 67 billion and an annual turnover of approximately Rs. 63 billion.

“Achieving AAA status reinforces the success of our financial model and boosts confidence among the banking and investment community. The company has been popularly known to maintain its stability over a period. The AAA rating has verified the company’s status with the achievement of this independent validation,” said D.H.S. Jayawardena, Group Chairman.

The AAA rating denotes the highest notch in a credit score for a Sri Lankan company and provides a secure backdrop for prospective lenders to support expansion with minimum or no risk going forward.

DCSL has a long-standing reputation for being cash rich, which has been consolidated further with this rating. Financial costs are a significant component for any organisation. With the relatively high interest rates in the market, DCSL will be able to leverage its minimal risk status to obtain low interest loans. As a cost-conscious entity, DCSL will leverage its stability to maximise shareholder wealth.

The Distilleries Company of Sri Lanka PLC is a company that can reference a history that is close to a century. Inscribed on its corporate DNA is experience, maturity, innovation, fortitude and the will to succeed.

Fitch Ratings is a global rating agency dedicated to providing the world’s credit markets with independent and prospective credit opinions, research, and data. With 49 offices worldwide, Fitch Rating’s global expertise, built on a foundation of local market experience, spans capital markets in over 150 countries. Fitch Ratings is widely recognised by investors, issuers, and bankers for its credible, transparent, and timely coverage.

Jayawardena added: “I wish to thank our shareholders, management, employees, customers, suppliers, financial institutions, the Government of Sri Lanka and the regulators for the confidence vested in our capabilities.”