Fitch revises outlook on CEB to positive

Fitch Ratings has revised the Outlook on Ceylon Electricity Board’s (CEB) National Long-Term Rating to Positive, from Stable, and has simultaneously affirmed the rating at ‘B(lka)’.

Fitch Ratings has revised the Outlook on Ceylon Electricity Board’s (CEB) National Long-Term Rating to Positive, from Stable, and has simultaneously affirmed the rating at ‘B(lka)’.

Fitch also affirmed the National Long-Term Rating of CEB’s outstanding senior unsecured debentures at ‘B(lka)’.

The Positive Outlook reflects the likely upgrade of the Sri Lankan sovereign’s Long-Term Local-Currency Issuer Default Rating (IDR) to reflect the sovereign’s prospects following the completion of a domestic debt exchange (DDE). We will equalise CEB’s ratings with that of the sovereign if the sovereign’s Long-Term Local-Currency IDR is upgraded to above ‘CC’, in line with our Government-Related Entities (GRE) Rating Criteria, resulting in a rating upgrade on the national scale. This is based on our assessment of a strong likelihood of support from the state.