Fitch upgrades CEB to ‘BB+ (lka)’; outlook stable

Fitch Ratings said yesterday it has upgraded Ceylon Electricity Board’s (CEB) National Long-Term Rating and the rating on CEB’s senior unsecured debentures to ‘BB+(lka)’, from ‘B(lka)’. The outlook is stable. 

The upgrade follows the 28 September 2023 upgrade of the Sri Lankan sovereign’s Long-Term Local-Currency Issuer Default Rating (IDR) to ‘CCC-’, from ‘Restricted Default (RD)’. CEB’s ratings are equalised with that of its parent, the Sri Lankan sovereign, based on our assessment of a ‘very strong’ likelihood of state support under our Government-Related Entities (GRE) Rating Criteria. 

CEB is Sri Lanka’s monopoly electricity transmitter and distributor and accounts for around 75% of the country’s power generation.