Fitch assigns Vidullanka's proposed sukuk 'A+(lka)' final rating

Fitch Ratings has assigned a final National Long-Term Rating of 'A+(lka)' to Sri Lanka-based renewable power producer Vidullanka PLC's proposed Rs.500 million sukuk issuance.

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The final rating is at the same level as the expected rating assigned on March 5, 2025.

The rating of the proposed sukuk issuance is at the same level as Vidullanka's National Long-Term Rating, as it will represent the issuer's senior secured obligation.

Hatton National Bank PLC (HNB, AA-(lka)/Stable) is the trustee. Proceeds from the issuance will be used to refinance Vidullanka's short-term loans and for funding working capital requirements.

"We believe the issuer's ability to satisfy payments due on the proposed sukuk will ultimately depend on the issuer satisfying its secured payment obligations to the trustee under the transaction documents, as described in the prospectus and other supplementary documentation," said Fitch in a rating commentary.