DSI Fitch Ratings at 'BBB+(lka)'

Fitch Ratings Lanka has affirmed the National Long-term rating of DSI Holdings Limited (DSIHL), as well as its senior unsecured debentures at 'BBB+(lka)'. The outlook is stable.

The ratings reflect DSIHL's market position as the largest footwear manufacturer in Sri Lanka, its well established brand franchise and its broad distribution network. DSIHL, along with other local footwear manufacturers, currently benefit from a restrictive cess on footwear imports, which was increased in late 2006, to protect the domestic industry.

As per the latest financial statements (amalgamated pro-forma and audited accounts for the 12 months ending March 2007), DSIHL's revenues and operating profits amounted to Rs. 5,514 million (up 26% over FY06) and Rs. 460m (up 9% over FY06) respectively.

Footwear accounted for around 85% of its revenues and around 78% of operating profits.

DSIHL is a fully-owned subsidiary of DSI Samson Group (Pvt) Ltd (DSG).