Fitch Assigns Bogawantalawa Tea Estates First-Time ‘A(lka)’ National Rating; Outlook Stable

Fitch Ratings has assigned Sri Lanka-based Bogawantalawa Tea Estates PLC a first-time National Long-Term Rating of 'A(lka)' with a Stable Outlook. Fitch has also assigned Bogawantalawa's outstanding senior unsecured debentures a National Long-Term Rating of 'A(lka)'.

Bogawantalawa's ratings are driven by the long-term structural decline at Sri Lankan tea plantations amid regulatory overhang on costs, which is driving weak profitability and weighing on the industry's appetite for replanting.

These risks are counterbalanced by Bogawantalawa's healthy financial profile that should act as a buffer against medium-term challenges.