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Sri Lanka downgraded five times in six years by Fitch 

28 Jan 2022

BY Imsha Iqbal  According to data compiled by the Public Finance website, powered by Verité Research, Sri Lanka has been downgraded five times since December 2015 from BB- to CC by Fitch Ratings.  Sri Lanka was downgraded to B+ from BB- in February 2016 and in December 2018, and was once again downgraded to B. However, the latter downgrade had taken place at a faster pace. Accordingly, the third downgrade took place during the month of April 2020 to B- while the fourth downgrade took place in November 2020 to CCC. The latest downgrade took place during last month (December 2021) to CC which is a demonstration that the circumstances of the country remain “extremely speculative”.   In the sovereign credit rating, Sri Lanka is one rating ahead of default, while the peers of the region, such as Singapore, have been able to maintain the rating of AAA during the last six years and Bangladesh has been able to maintain its rating of BB- throughout the last years.  Additionally, the Philippines, which happened to have a rating of BBB-, has been able to upgrade to BBB and maintain its status. Meanwhile, Pakistan has been able to secure a B- credit rating. 


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