Fitch Ratings has affirmed the National Long-Term Rating of Sri Lanka-based footwear and tyre manufacturer and retailer, DSI Samson Group (Pvt) Ltd, at ‘AA(lka)’. The outlook remains stable.
This affirmation, along with the stable outlook, reflects Fitch’s view that DSI Samson Group will maintain an adequate liquidity and financial profile despite the challenges posed by a recovering domestic economy and stiff competition, as well as headwinds from weak export markets. Fitch anticipates that the company’s profit margins will narrow over the next 12-18 months before starting to recover.
DSI Samson Group’s rating underscores its strong position in the domestic market for pneumatic tyres and footwear. However, the rating is constrained by the cyclical demand for its largely homogenous products in a highly competitive market.
Posted by CORPORATE NEWS
