ICRA Lanka Withdraws Rating of JAT Holdings PLC

InstrumentCurrent Rated Amount (LKR Mn) Rating Action
Issuer rating         N/A [SL] A+ (Stable); Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] A+ (pronounced S L A plus) with Stable outlook assigned to JAT Holdings PLC (“JAT”/”the Company”). The withdrawal is as a result of termination of rating agreement(s) entered into by JAT with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka. .

The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).

About the Company:

JAT Holdings PLC (JAT) which was incorporated in 1993 and was listed on the Colombo Stock Exchange on August 12, 2021, is a dominant player in the Sri Lankan wood coating, decorative painting, and interior living spaces market segments. The Company has a commanding market position in the Sri Lankan wood coating industry, mainly due to its brand equity. While wood coating products are its core business segment, the Company has successfully ventured into adjacent market segments, such as decorative paints, paintbrushes, furniture accessories, and interior products. JAT has the competitive advantage of being the sole distributor and marketer for Sayerlack premium wood coating products for selected countries in the Asian and Africa regions. The exclusive distribution rights have enabled JAT to rapidly grow its export sales in much larger markets such as Bangladesh and India. In addition to its core wood coating and decorative products, JAT envisages to position itself as the leading player in the broader interior and living spaces market. The Company has taken some strategic initiatives, including introducing SEA luxury kitchen units, Herman Miller premium furniture, and Armstrong architectural products to the Sri Lankan market.

Rating history for last three years:

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