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Fitch recalibrates Sri Lanka’s National Rating Scale

Fitch Ratings has reported that has recalibrated Sri Lanka’s National Rating Scale following their earlier downgrading of the country’s sovereign rating has been downgraded from “B” to “B-” signalling a negative “Long-Term Issuer Default Rating”.

Fitch Ratings are used to indicate the relative credit worth of sovereign nations and a negative rating spells further economic worries for Sri Lanka.

Sri Lanka’s external debt amounts 3.2 billion USD, from May to December 2020, and this includes 1 billion USD worth of debt due in October.

According to earlier reporting by Fitch, Sri Lanka's external liquidity ratio, defined as liquid external assets/external liabilities, at about 64%, so Sri Lanka is among the weakest in the 'B' rating category.

Sri Lanka has decried Fitch’s downgrading stating the decision was “illogical”.

Read more here: Sri Lanka lashes out at rating agency for ‘illogical’ downgrade as debt payments pile

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