Fitch maintains Sri Lanka’s rating at ‘RD’

Fitch Ratings reaffirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default), according to its latest report published on Wednesday.

The Long-Term Local-Currency IDR remains at ‘CCC-‘. Given the ‘CCC+’ or below rating level, Fitch does not assign Outlooks to Sri Lanka.

Sri Lanka continues to be in default on its foreign-currency obligations, and restructuring negotiations with private external creditors are ongoing. However, recent developments indicate progress towards a debt restructuring agreement.

The authorities have announced that a preliminary agreement has been reached, in principle, with members of the steering committee of the Ad Hoc Group of Bondholders and China Development Bank.

Attribution: Fitch Ratings report

Subediting: M. S. Salama