Fitch
Fitch Ratings has assigned Sri Lanka’s forthcoming US dollar bonds an expected rating of ‘B(EXP)’.
The expected rating is in line with Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B’ with a Stable Outlook.
The rating on the bonds would be sensitive to any changes in Sri Lanka’s Long-Term Foreign-Currency IDR. Fitch downgraded Sri Lanka’s Long-Term Foreign- and Local-Currency IDRs to ‘B’ from ‘B+’, with a Stable Outlook, in December 2018.
Moody’s
Moody’s Investors Service (“Moody’s”) yesterday assigned a B2 rating to the Government of Sri Lanka’s proposed senior unsecured US dollar-denominated bonds.
The rating is based on the preliminary offering memorandum received on June 19, 2019.
The bonds will rank pari passu with the Government of Sri Lanka’s current and future senior unsecured external debt. The B2 rating assigned to the notes mirrors the Government of Sri Lanka’s issuer rating of B2.
The proceeds of the bonds are intended to meet government expenditures.
Sri Lanka’s credit profile reflects significant government liquidity and external vulnerability risks. This is balanced against moderate per capita income levels and stronger institutions relative to many similarly-rated sovereigns that support the B2 rating. Foreign exchange reserve coverage of forthcoming government debt maturities and economy-wide external debt obligations is low.
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