RAM assigns BBB+/P2 ratings to Vidullanka

RAM Ratings Lanka has assigned respective long and short-term ratings of BBB+ and P2 to Vidullanka PLC, the long-term rating has a stable outlook.

Vidullanka is an independent power producer (IPP) focusing on renewable energy and is listed on the Colombo stock exchange. The Company subsidiary Vidul Construction Limited (VCL), specialises in the construction of mini hydro-power projects. Vidullanka currently owns two mini hydro-power projects and is a working partner of another project which manages two other power projects.

Vidullanka's fourth power plant will be commissioned by March 2010.

Their first power plant began operations in 2001 (capacity: 3.2 MW) while the second began in 2007 (capacity: 2 MW). Both plants supply power to the national grid, under two 15-year power purchase agreements (PPAs).

Vidullanka's ratings are supported by its sound project economics and the management's prudent financial strategy.

The Company's credit profile has been improving consistently over the past 3 years, as it has been retiring debts through internally generated funds.