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”.
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