ECONOMYNEXT – Fitch Ratings has downgrade Sri Lanka’s sovereign rating to ‘C’ from ‘CCC’ by Fitch after the Indian Ocean Island announced a suspension of foreign debt repayments and said a restricted default (RD) rating will be given after the first payment is missed.
With the announcement on April 12 that most foreign payments would be suspended, Fitch said a ‘default like process’ has begun. Local currency debt has been excluded.
A coupon on a 1250 million dollar sovereign bond is due on April 18. Sovereign bonds typically have a 30 day grace period.
Fitch said it will downgrade Sri Lanka to ‘RD’ “once a payment on an issuance is missed and the grace period has expired.”
With the announcement on April 12 that most foreign payments would be suspended, Fitch said a ‘default like process’ has begun. Local currency debt has been excluded.
A coupon on a 1250 million dollar sovereign bond is due on April 18. Sovereign bonds typically have a 30 day grace period.
Fitch said it will downgrade Sri Lanka to ‘RD’ “once a payment on an issuance is missed and the grace period has expired.”
