More downgrades hit Sri Lanka after outlook worsens

sri lanka fisherman px230
By Addison Gong
05 Dec 2018

The political upheaval in Sri Lanka since October led S&P and Fitch to downgrade the sovereign’s ratings this week, following a similar move by Moody’s in November. All three agencies have pointed to heightened refinancing risks, with a weak rupee and rising bond yields restraining the country’s access to capital markets.

S&P has lowered Sri Lanka’s long-term sovereign credit rating to B from B+, on reduced prospects of reform given the fractious political environment. Wednesday's move came soon after Fitch downgraded the south Asian country by one notch to B. 

But the Central Bank of Sri Lanka called the rating ...

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