CEAT Kelani Holdings reaffirmed AA+ by Fitch for 3rd consecutive year

CEAT Kelani Holdings (CKH) has been assigned a National Long-Term rating of ‘AA+(lka)/Stable’ by Fitch Ratings for a third consecutive year, a rating the Agency says reflects the Company’s position as a leading domestic manufacturer of vehicle tyres and its strong financial profile.In its announcement, Fitch Ratings said: “The affirmation and Stable Outlook reflect our view that CKH will maintain adequate credit metrics and liquidity despite its expansion plans and a still weak operating environment.”

“Import restrictions on tyres have largely eased, raising competition for domestic manufacturers, but we believe CKH will defend its market position owing to its strong brand and distribution network and modest cost advantage compared with imports,” the rating agency said.

The AA+ credit rating is the second highest rating assigned by Fitch Ratings to reflect an entity’s ability to meet financial commitments. Key rating drivers for CEAT Kelani Holdings included a projected gradual recovery in demand for tyres, growth from new markets, and strong market position.

Commenting on the rating, CEAT Kelani Holdings Chairman Chanaka De Silva said: “As the single largest tyre manufacturer in Sri Lanka, we are delighted to note that our rating has remained unchanged for three years despite the challenging external factors.