Fitch downgrades Sri Lanka to 'C'

Dilini Madushanki | Published: 10:15 AM Apr 14 2022
Local Fitch downgrades Sri Lanka to 'C'

Fitch Ratings has downgraded Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'C' from 'CC'.  

The downgrade of Sri Lanka's Long-Term Foreign-Currency IDR reflects Fitch's view that a sovereign default process has begun.

This reflects the announcement by the Ministry of Finance on 12 April that it has suspended normal debt servicing of several categories of its external debts, including bonds issued in the international capital markets and foreign currency-denominated loan agreements or credit facilities with commercial banks or institutional lenders. 

Meanwhile, Fitch Ratings announced earlier this week that it has placed the National Long-Term Ratings of 13 Sri Lankan banks on Rating Watch Negative (RWN).

Dilini Madushanki | Published: 10:15 AM Apr 14 2022

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