Srilanka, Nov. 4 -- Fitch Ratings has upgraded Kotagala Plantations PLC's National Long-Term Rating to 'B-(lka)', from 'CCC(lka) and assigned a Stable Outlook.
The upgrade factors in improving liquidity as Kotagala accessed new bank financing in the financial year ended March 2026 (FY26), and continued to deleverage by repaying debt. However, the company continues to face refinancing risk because it does not have unutilised credit facilities while its ability to meet debt obligations with internal cash generation remains limited.
The rating also reflects the company's exposure to commodity price volatility and operating cost pressures following recent regulatory increases to wages of plantation workers.
Key Rating Drivers
Liquidity Weak...