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Little Miss Muffet

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Media Release
RAM Ratings Lanka assigns corporate ratings of A/P2 to
CIC Holdings PLC

RAM Ratings Lanka has assigned respective long- and short-term corporate credit ratings of A and P2 to CIC Holdings PLC (“CIC” or “the Group”); the outlook on the long-term rating is stable. The Group’s ratings are supported by the dominant market positions in its key business areas as well as resilient demand for agriculture related products. The ratings also reflect CIC’s adequate gearing and debt protection metrics and the Group’s diversified business profile. The ratings are however, pressured by the competitive industry landscape the Group operates in, as well as its exposure to vagaries of the agriculture segment.
CIC has diversified businesses in the agribusiness and livestock industry as well as interests in the consumer and pharmaceutical industries, paints, industrial raw material and packaging. The Group has strong market positions in most of its key business lines, particularly in its agribusiness portfolio. CIC is the largest private sector player in the domestic fertiliser industry, with an estimated 40% market share in the non-paddy segment. Meanwhile, the Group is one of the largest players in the pesticides market, with a share of around 25%. Additionally, CIC is also the market leader in the paint industry through its associate Akzo Nobel
Paints Lanka (Pvt) Ltd (“Akzo Nobel Lanka”); its Dulux brand is estimated to command around 40% of the market.
Meanwhile the ratings are further supported by the resilient demand for agriculture related products, which is the Group’s mainstay. Within the agriculture segment CIC caters to the fertiliser requirements of the tea industry which is an integral component of Sri Lanka’s economy. Furthermore, demand for pesticides is anticipated to be relatively resilient as it a crucial input in the cultivation

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