Fitch rates Melstacorp AAA(lka)

Fitch Ratings said it assigned a national long-term rating of AAA(lka) to Melstacorp plc.

The outlook is stable.

The rating reflects the group's strong credit profile, underpinned by its entrenched market position in Sri Lanka's alcoholic-beverage sector and the high entry barriers, which drive its strong operating cash flows and low leverage, Fitch said.

Those factors offset the weaknesses in its other, less operationally significant, investments, the agency said.

Fitch said it expects the alcoholic-beverage sector's importance to government revenue to reduce the risk the government will hobble the industry.

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