Fitch downgrades Sri Lanka on threats to budget, policy after Rajapaksa appointment
Dec 04, 2018 07:33 AM GMT+0530
ECONOMYNEXT - Fitch Ratings has downgraded Sri Lanka to 'B' from 'B+ saying the sudden appointment of Mahinda Rajapaksa as Prime Minister may worsen budgets, with policy becoming more uncertain and investor confidence falling.
The outlook is stable at the lower level. Moody's had already downgraded Sri Lanka to B2 from B1.
"The downgrade reflects heightened external refinancing risks, an uncertain policy outlook, and the risk of a slowdown in fiscal consolidation as a result of an ongoing political crisis following the President's sudden replacement of the Prime Minister on 26 October 2018," the rating agency said.
"Fitch expects fiscal slippages as the current political climate is likely to lead to delays in setting policy priorities and to disrupt progress on future reforms.
"The 2019 budget has already been pushed back, while the IMF programme has been put on hold.
Read more:
https://economynext.com/Fitch_downg...cy_after_Rajapaksa_appointment-3-12796-1.html
- https://twitter.com/AzzamAmeen/status/1069799055784460289
Dec 04, 2018 07:33 AM GMT+0530
ECONOMYNEXT - Fitch Ratings has downgraded Sri Lanka to 'B' from 'B+ saying the sudden appointment of Mahinda Rajapaksa as Prime Minister may worsen budgets, with policy becoming more uncertain and investor confidence falling.
The outlook is stable at the lower level. Moody's had already downgraded Sri Lanka to B2 from B1.
"The downgrade reflects heightened external refinancing risks, an uncertain policy outlook, and the risk of a slowdown in fiscal consolidation as a result of an ongoing political crisis following the President's sudden replacement of the Prime Minister on 26 October 2018," the rating agency said.
"Fitch expects fiscal slippages as the current political climate is likely to lead to delays in setting policy priorities and to disrupt progress on future reforms.
"The 2019 budget has already been pushed back, while the IMF programme has been put on hold.
Read more:
https://economynext.com/Fitch_downg...cy_after_Rajapaksa_appointment-3-12796-1.html
- https://twitter.com/AzzamAmeen/status/1069799055784460289
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