Fitch affirms Sunshine Holdings with stable outlook

Fitch Ratings has affirmed Sri Lanka-based Sunshine Holdings PLC’s National Long-Term Rating at ‘AA+(lka)’. The outlook is stable.

The affirmation and Stable Outlook reflect Fitch’s view that Sunshine’s exposure to defensive cash flow will support its financial metrics in the next 12-18 months, despite challenging operating conditions. Sunshine’s rating reflects its strong financial profile and solid market positions in healthcare, fast moving consumer goods, such as packaged tea and confectionery, and palm oil plantations.

The rating is constrained by a small operating scale, commodity-price volatility in Sunshine’s palm-oil business and regulatory risks in healthcare.