RAM assigns A- to Lankem debentures
RAM Ratings Lanka has reaffirmed the respective long- and short-term
corporate credit ratings of Lankem Ceylon PLC at A- and P2.
Concurrently, they have assigned a long-term rating of A- to Lankem’s
proposed Rs 500 million unsubordinated unsecured redeemable debentures
(2010/2015). Both long-term ratings have a stable outlook.
The ratings are supported by stable demand for Lankem’s key product
-agrochemicals - and its dominant market positions in most of its
business lines. On the other hand, the ratings are moderated by the
Group’s heavy debt burden.
Lankem was incorporated in 1964, focusing primarily on agrochemicals.
Over the years, the Group has ventured into various other sectors,
including industrial chemicals and bituminous products, paints, consumer
products, construction, plantations and leisure. |