EAP Broadcasting to get new rating for debt issue

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June 11, 2015 (LBO) – Sri Lanka’s EAP Broadcasting Company Limited said that it has taken all the steps necessary to obtain another rating for its proposed debenture issue which was to be held today.

Sri Lanka’s securities watch dog issued a directive to EAP Broadcasting Monday to hold its debt issue citing a conflict of interest arising in the credit rating of the company’s debenture.

The said conflict of interest arises from having a common director on the respective Boards of Directors of both the issuer company and the Credit Rating Agency and two of the Directors of the issuing company being members on the Rating Committee of LRA, SEC said in a statement.

The proposed debenture issue that was scheduled to be opened on 11th June 2015 has been postponed, until another rating is obtained, the company said in a filing to the SEC.