Sri Lanka has been downgraded to selective default by credit ratings agency Standard & Poor’s after the South Asian country missed sovereign bond interest payments.
The foreign currency debt rating on Sri Lanka was lowered to selective default from B-minus by Moody’s Investors Service on Thursday after the South Asian country missed interest payments on its debt for a second time this year.
Sri Lanka’s ranking as an issuer of foreign currency debt was cut to a selective default Wednesday by Fitch Ratings, citing non-payment on its Chinese-held bonds.
Sri Lanka’s foreign-currency debt rating was cut to selective default from CC on June 9 after the nation missed payments due in May and June, Fitch Ratings said.
Sri Lanka’s ratings downgrade to ‘selective default’ by all three credit rating agencies on March 28, 2015 was fueled by debt servicing problems related to their foreign currency-denominated debts. Sri Lanka has US$5.91 billion of bonds due between 2015 and 2019 that were issued under domestic law; in addition the country has US$5.78 billion of bonds due in 2019 and 2020 in foreign currencies.
Sri Lanka has fallen into selective default after missing interest payments due on its foreign currency bonds, according to the International Swaps and Derivatives Association. The organisation said that Sri Lanka failed to make a $65 million coupon payment on the nation’s USD 2.5 billion of Brady bonds, which were issued in 2009 to help it deal with its debt crisis.
Our foreign currency credit rating on Sri Lanka was revised down to selective default from CC on August 7, 2015. This was driven by our view that the missed interest payment on one of its bonds will likely lead to further missed payments, which could potentially trigger cross-defaults.
SRI LANKA WAS yesterday put on ‘selective default’ by the ratings agency Standard & Poor’s after missing $200 million in principal payments due from its island neighbour.
Sri Lanka’s foreign currency rating was downgraded to selective default at the end of November 2013 by Fitch Ratings and Standard & Poor’s (S&P) due to a failure of the government to service its foreign currency debt.
Sri Lanka’s Moody’s-rated B3 foreign currency bond rating placed it in default, with a negative outlook, after the country failed to service debt due on July 2. The sovereign bond is denominated in USD.
Sri Lanka has been downgraded by the rating agency Moody’s. The country was first downgraded from B2 to B3 in 2011 and was then upgraded in 2012 following its successful debt swap, but then downgraded again in 2013 after the presidential election.