Fitch Downgrades SL Dollar Bond Rating to ‘Default.’
Posted 21,May

By Chehan Jayasuriya

In Local News

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Fitch Ratings downgraded Sri Lanka to Restricted Default (RD) 30 days after the country failed to meet a bond coupon payment, following announcements on April 12 to suspend debt servicing. Ratings on dollar bonds were dropped to Default (D).

Following the announcement of April 12, Sri Lanka was downgraded to ‘C’ by Fitch Ratings.

“We have downgraded Sri Lanka’s foreign-currency issue ratings to ‘D’ from ‘C,’ given the default on the senior unsecured foreign-currency bonds and the cross-default clauses triggered in the other rated international foreign-currency sovereign bonds,” the rating agency said.

Sri Lanka’s Long-Term Local-Currency debt ratings weren’t affected and are still rated at ‘CCC.’