Fitch Ratings has assigned a final ‘B’ rating to SriLankan Airlines Limited’s (SLA) USD175 million government-guaranteed 7% unsecured bonds due 25 June 2024. The final rating on the bonds is in line with the expected rating assigned on 19 June 2019.
The issuance proceeds were used to repay the company’s US$175 million bond due 27 June 2019. Key Rating Drivers; The bonds are rated at the same level as the bonds issued by SLA’s parent, the government of Sri Lanka (B/Stable), due to the unconditional and irrevocable guarantee provided by the government.
The government’s bonds are, in turn, rated in line with the sovereign’s Long-Term Issuer Default Rating (IDR) of ‘B’. The payment obligations arising under the guarantee rank pari passu with all other present and future, unconditional, unsecured and unsubordinated obligations of the government. The state held 99.5% of SLA as of end-May 2019 through direct and indirect holdings.
Fitch assigns SriLankan Airlines’ Guaranteed USD Bonds ‘B’ Final Rating
