Fitch: Latest News

 Sri Lanka’s rupee, which became the world’s best performing currency this year amid hopes of an International Monetary Fund bailout, may resume declines and lose a fifth of its value against the dollar by end-2023, according to Fitch Solutions.“We are optimistic that Sri Lanka will be able to secure an IMF board approval by early 2Q-2023,” said Seah Wang Ting, country risk analyst at Fitch Solutions. Nevertheless, there’s potential for disruptions after the initial board approval as authorities may find it challenging to stay on track with the IMF program amid a weakening economy and a local election likely on the horizon, he said.Fitch maintained its forecast for the rupee to weaken to a record low of 390 per dollar by year-end.

COLOMBO (News 1st) – Fitch Ratings has downgraded Sri Lanka's Long-Term Local-Currency Issuer Default Rating (IDR) to 'CC', from 'CCC', and has affirmed the Long-Term Foreign-Currency IDR at 'RD' (Restricted Default). Fitch typically does not assign Outlooks to ratings of 'CCC+' or below.Fitch has also removed the Long-Term Local-Currency IDR from Under Criteria Observation, on which it was placed on 14 July 2022, following the publication of the updated Sovereign Rating Criteria.A full list of rating actions is at the end of this rating action commentary.KEY RATING DRIVERS:Challenging Domestic Financing Outlook: Sri Lanka continues to service its local-currency debt, but the downgrade of the Long-Term Local-Currency IDR reflects our view that a local-currency debt default is probable, in view of an untenably high domestic interest payment/revenue ratio, high interest costs, tight domestic financing conditions and rising local-currency debt/GDP in the context of high domestic fiscal financing requirements, which authorities forecast at about 8% of GDP in 2022.According to authorities, domestic interest payments in 8M22 were LKR718.8 billion, taking the domestic interest/revenue ratio to an estimated 56% in 8M22; the highest among sovereigns rated 'CCC+' and below.

Colombo (News 1st) – Rated Sri Lankan corporates in consumer-goods retail, power generation and homebuilding will be among the most affected if the economic crisis deepens or is sustained for a prolonged period, says Fitch Ratings. Significant cost inflation affecting demand and profitability, import restrictions disrupting operations, and high interest rates are key risks faced by domestic corporates in the next 12-18 months.Based on Fitch’s base case forecast assumptions, we project that most other corporates will be able to weather the current economic downturn, supported by their presence in defensive industries, weakened competition, strong balance sheets, and adequate liquidity.Most rated corporates posted strong revenue growth and expanding margins in their June 2022 quarterly results due to inflation-led price hikes and sale of lower-cost inventory purchased prior to the sharp devaluation in the local currency in March 2022.

COLOMBO (News 1st); Rating agency Fitch, has downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘C’ from ‘CC’.The full press release regarding the downgrade action is as follows;The issue ratings on foreign-currency bonds issued on international markets have also been downgraded to ‘C’ from ‘CC’. The Long-Term Local-Currency IDR has been affirmed at ‘CCC’ and the Country Ceiling at ‘B-‘.

LANGHORNE, Pa. - A lot of sad news has happened in the area in the last week, so it’s always good to share a story with a happy ending. A Bucks County man needing a kidney donor has found a match, all thanks to social media."I felt like I won the lottery of life, I really did," Joe Fitch commented.It’s a rainy, gloomy April afternoon, but that could never dull the enthusiasm and gratitude oozing from 55-year-old kidney transplant recipient Joe Fitch of Langhorne."After the broadcast that you guys had done last year, I had a donor who watched the program and she started testing," Fitch explained.MORE HEADLINES:The donor who saw the shared social media post of Joe’s story on FOX 29 emerged.

KEY RATING DRIVERSIDRs and VIABILITY RATINGThe rating actions follow Fitch’s downgrade of Sri Lanka’s Long-Term Foreign-Currency IDR to ‘CC’ from ‘CCC’ and the affirmation of the sovereign’s Long-Term Local-Currency IDR at ‘CCC’ on 17 December 2021. See Fitch Downgrades Sri Lanka’s Long-Term Foreign-Currency IDR to ‘CC’.The downgrade of BOC’s Long-Term Foreign-Currency IDR is driven by the downgrade of its VR.