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May 02 (LBO) - Fitch Ratings revised the outlook on Sri Lanka Telecom’s foreign currency debt to negative from stable, but said the rating of BB- remains unchanged. The revision followed a similar change in the outlook of the Sri Lanka’s sovereign rating.

Both Fitch and S & P changed the outlook on Sri Lanka’s sovereign rating from ˜Stable’ to ˜Negative’ as fighting between government forces and Tamil Tigers intensified and the country’s army commander was targeted by a suicide bomber.

But Fitch said SLT’s local currency long-term issuer default rating (IDR) remained unchanged and the AAA(lka) national long-term rating also remained unchanged.

œSLT's foreign currency rating, which takes into account convertibility risk, is constrained by the sovereign foreign currency rating, Fitch said.

œSLT's foreign currency rating, which takes into account convertibility risk, is constrained by the sovereign foreign currency rating. However, SLT's Long-term Local Currency IDR better reflects the company's stand-alone credit profile and is not constrained by the sovereign rating, hence the Stable Outlook is maintained.

The rat

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