(The following was released by the rating agency)
Link to Fitch Ratings' Report: 2013 Outlook: Sri Lanka Telecommunication Services
COLOMBO/MUMBAI/SINGAPORE, November 19 (Fitch) Fitch Ratings said in a special report released today that the 2013 outlook for incumbent Sri Lankan telecommunications companies (telcos) is stable, but that for smaller operators is negative.
"The industry as a whole will benefit from growing demand across most product segments," said Hasira De Silva, Vice President in Fitch's Corporates rating team. "However the credit profiles of newer entrants are likely to be disproportionately affected by high capex required to improve capacity, as well as high marketing costs," added Mr De Silva.
The report highlights Fitch's views on increasing demand, high capex and infrastructure sharing, profitability pressures as well as regulatory and M&A risks.
The report, '2013 Outlook: Sri Lanka Telecommunication Services - Increasing Demand, High Capex', is available at www.fitchratings.com or by clicking on the link above.