Fitch rates CEB’s proposed debt up to Rs.20bn at ‘AA+(lka)’

Fitch Ratings has assigned Ceylon Electricity Board’s (CEB: AA+(lka)/Negative) proposed senior unsecured debenture issue of up to Rs.20 billion a National Long-Term Rating of ‘AA+(lka)’. 

The debentures constitute direct, unsubordinated and senior unsecured obligations of CEB and are rated at the same level as the entity’s National LongTerm Rating. 

CEB’s ratings are equalised with that of its parent, the Sri Lankan sovereign (B/Negative), in line with Fitch’s Parent and Subsidiary Rating Linkage criteria. 

The equalisation takes into consideration CEB’s strategic importance to Sri Lanka in ensuring power security and supply of affordable electricity to the public. 

The proposed debentures will be listed on the Colombo Stock Exchange and are expected to have a fixed coupon rate with a maturity of five years, with proceeds to be used for general working capital purposes.