Fund Rating

June 18, 2014 (LBO) - Fitch Ratings said an 'A-(lka)' national fund credit rating given to Ceylon Income Fund in Sri Lanka has been confirmed.

The negative modifier in the fund's 'A-(lka)' National Fund Credit Rating reflects Fitch's view that the fund is moderately concentrated with a top-five issuer concentration of around 56% of the portfolio as of May 2014.

The fund's investment guidelines limit it to investment-grade rated issuers only. The majority of issuers in the portfolio are rated in the 'A(lka)' and 'BBB(lka)' rating categories.









Around 11% of securities in the portfolio were subject to Rating Outlook Negative as of May 2014, but no securities were subject to Rating Watch Negative.

CONCENTRATION:

In Fitch's opinion, the fund is moderately concentrated. Consistent with its rating criteria, Fitch has, therefore, conducted deterministic stress tests on the portfolio.

Based on its analysis, Fitch believes the fund has a limited capacity to withstand negative rating migration before it would be downgraded to the 'BBB(lka)' National Fund Credit Rating Category. The negative modifier in the fund's 'A-(lka)' National Fund Credit