Sri Lanka Telecom's ratings unaffected by ownership change - S&P

Standard & Poor's Ratings Services said its 'BB-' ratings on Sri Lanka Telecom Plc. are not affected by the recent change in ownership.
Japan's Nippon Telegraph & Telephone Corp. sold its entire 35 percent stake in Sri Lanka Telecom to Malaysia's Global Telecommunications Holdings N.V., a wholly-owned subsidiary of Usaha Tegas Sdn. Bhd.
S&P said it expects the new shareholder to be in Sri Lanka Telecom's management and have board representation, and the government to continue to refrain from adverse intervention, given the competitive nature of the telecommunication industry and the active participation of domestic and foreign investors in the company.The rating agency has a negative outlook on the company.