Fitch Ratings has assigned a National Long-Term Rating of A(lka) to WindForce PLC’s proposed senior unsecured redeemable debentures of up to Rs. 4 billion, one notch below the company’s corporate rating of A+(lka)/Stable.
Fitch attributed the lower rating to “increased structural subordination stemming from the secured debt held by its operational subsidiaries, which are financing capacity expansion.” In credit terms, unsecured debenture holders at the parent level rank behind secured lenders at project company level if the group were to run into distress.
The outlook is Stable. Fitch projects peak net leverage of 9.0x EBITDA in fiscal year 2027, easing thereafter as new generation assets come online.
The debenture issue is the debt-market leg of the Rs. 4 billion green bond programme WindForce announced on April 3 to fund renewable energy expansion. The company operates roughly 145 MW of installed capacity, comprising 74 MW of wind, 55 MW of solar, and 15 MW of hydro assets serving the Sri Lankan market and select regional projects.
Fitch flagged counterparty risk as the primary constraint on WindForce’s credit profile. More than 80% of the group’s EBIT comes from cash flows linked to the National System Operator (Pvt) Ltd (NSO), the state-owned successor to the restructured Ceylon Electricity Board. NSO itself carries an A(lka) rating, effectively capping how high WindForce’s project-level ratings can go regardless of operational performance.
The debenture pricing lands at a difficult moment for Sri Lanka’s renewable energy financing, as investors weigh the accelerating need for domestic clean power against rising counterparty and grid-integration risks during the ongoing Middle East energy crisis.
