OREANDA-NEWS. Fitch Ratings has assigned Sri Lanka-based cable manufacturer Sierra Cables PLC (Sierra) a National Long-Term Rating of 'BB+(lka)'. The Outlook is Stable.

Sierra's rating reflects its established core business, which has an extensive product portfolio, modest but expanding market share and stable EBITDA margins. This is counterbalanced by exposure to cyclical end-markets, risks associated with international expansion and losses at subsidiaries. The rating is also supported by Fitch's expectation that the company will maintain net leverage, measured as net adjusted debt/operating EBITDAR, at less than 2.5x over the medium term, despite planned capacity expansions. Leverage was 2.4x in the financial year ended 31 March 2016 (FY16).