S&P rates Sri Lanka bond B+

Standard & Poor’s said it assigned a B+ rating to the global bond issued by Sri Lanka.

The senior unsecured bond constitutes direct, unconditional, unsubordinated and unsecured general obligations of the issuer, S&P said, and payments will be backed by the full faith and credit of Sri Lanka.

The bond has a 10-year maturity.

The rating reflects the country’s relatively low wealth, improving but still moderately weak external liquidity and a high government debt- and interest-burden, S&P said.

While the government has recently taken steps to strengthen governance, the agency said it considers the current gaps in institutional capacity as risks to Sri Lanka’s institutional and governance effectiveness.

The rating benefits from the country’s robust growth prospects, S&P said.

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