S&P rates Sri Lanka bonds B+

Standard & Poor's said it assigned its B+ senior unsecured debt rating to the proposed benchmark-sized U.S. dollar-denominated global bond issue by the Democratic Socialist Republic of Sri Lanka (B+/stable/B). The bonds mature in January 2019.

S&P said the sovereign credit ratings on Sri Lanka take into account the country's relatively weak external liquidity, moderately high and increasing external debt, and a high government debt and interest burden. In addition, some of the country's political institutions lack extensive checks and balances.

If Sri Lanka sustains its recent improvements in external indicators, including a reduction in the current account deficit, these rating constraints could ease, S&P said.

The rating constraints are balanced against robust growth prospects. Growth drivers include government measures to reconstruct the northern districts, improve the finances of public enterprises, and limit inflation to single digits, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.