Bangkok--28 Sep--Standard & Poor's
Standard & Poor's Ratings Services today assigned its 'B+' senior unsecured debt rating to the proposed U.S. dollar-denominated global benchmark-size bond issue, maturing in 2020, by the Democratic Socialist Republic of Sri Lanka (foreign currency B+/Stable/B; local currency BB-/Stable/B).
The ratings on Sri Lanka take into account its strong growth prospects and the continued strengthening of balance-of-payments position. It also incorporates Standard & Poor's expectation that the government's planned revenue reforms will improve public finances, such that fiscal deficits and public debt will decline again in a sustainable manner.
These factors are balanced against ongoing risk posed by excessive public and external leverage, and the risk of a rebound in inflation.
The ratings on Sri Lanka could be raised on evidence of more comprehensive fiscal or structural economic reforms resulting in faster-than-expected reduction of vulnerabilities posed by the high debt and interest burdens, and still-narrow economic profile.
Standard & Poor's may lower the rating in the event of substantial deviation from the International Monetary Fund program, or if expectations on recovery in Sri Lanka's growth prospects and revenue improvements disappoint.
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
David Wargin, New York (1) 212.438.1579,
[email protected]
Analyst Contacts:
Agost Benard, Singapore (65) 6239-6347
Takahira Ogawa, Singapore (65) 6239-6342