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S&P downgrades Sri Lanka to CCC, outlook negative

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COLOMBO (News 1st); Standard & Poor’s (S&P) lowered long-term sovereign credit rating on Sri Lanka from ‘CCC+’ to ‘CCC’ on increasing external financing risks on Wednesday (12).There is a rising probability of sovereign default scenarios playing out over the next 12 months in the absence of an unforeseen positive development, S&P in a statement said the outlook is negative.At the same time, the rating agency affirmed ‘C’ short-term credit rating.S&P said the country’s external position continues to weaken owing to elevated external obligations and uneven access to financing. .

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