Fitch Affirms WindForce PLC at ‘A+(lka)’; Outlook Stable 📈

• Rating Action: Fitch Ratings has affirmed WindForce PLC’s National Long-Term Rating at ‘A+(lka)’ with a Stable Outlook, reflecting its status as a leading renewable energy producer in Sri Lanka and regional markets. • Expansion & Capex: The company plans a massive LKR 40 Bn investment over the next two years for solar and wind projects. This includes Sri Lanka’s largest renewable project (100MW solar with battery storage) in partnership with Lakdhanavi. Total capacity is expected to exceed 200MW by FY28. • Financial Health: • Leverage: EBITDA net leverage is projected to spike to 6.8x in FY27 due to debt-funded capex, before moderating to 4.6x in FY28. • Margins: EBITDA margins are expected to stabilize at ~70% for FY26–FY28. • Receivables: Payment cycles from the CEB have significantly improved, dropping to 40 days from a peak of 350 days in FY23. • Key Constraints: The rating is capped by the credit profile of the Ceylon Electricity Board (CEB), which accounts for over 80% of WindForce’s EBIT. While CEB’s performance has improved, risks remain regarding cost-reflective tariff implementation and sovereign support. • Sector Impact: As a major player in power & energy, WindForce’s growth supports national decarbonization goals and reduces reliance on imported fossil fuels, though it remains highly sensitive to the financial stability of the state utility.