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Moody's downgrades SL's ratings, changes outlook to stable

20 November 2018 06:23 pm - 14     - {{hitsCtrl.values.hits}}

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Moody's Investors Service today downgraded Sri Lankan Government's foreign currency issuer and senior unsecured ratings to B2 from B1 and changed the outlook to stable from negative.

In a statement, it said the decision to downgrade the rating to B2 was driven by Moody's view that ongoing tightening in external and domestic financing conditions and low reserve adequacy, exacerbated most recently by a political crisis which seems likely to have a lasting impact on policy.

“Moody's projections include a slower pace of fiscal consolidation than assumed in July to reflect disruption to fiscal policy implementation in a period of political turmoil. The stable outlook denotes balanced credit risks at the B2 rating level. Moody's expectation is that, despite the current political crisis, any future government will remain broadly focused on implementing important fiscal, monetary and economic reforms that would strengthen the credit profile over the medium term.

However, Moody's assessment is that the government's debt refinancing will remain highly vulnerable to sudden shifts in investor sentiment in a period of further tightening in financing conditions and political and policy uncertainty, with limited buffers to face such risk,” it said.

  Comments - 14

  • das Tuesday, 20 November 2018 06:32 PM

    Congratulations, MR!!

    Mokan Tuesday, 20 November 2018 06:34 PM

    The so called the national professional front should concentrate on this rather than writing letters to high commissions

    vithura Tuesday, 20 November 2018 08:41 PM

    Passing exams alone does not make them professionals, the moment they undermined 'public interest' by associating with those accused of impropriety in national governance, they have lost all credibility.

    Unchikun Tuesday, 20 November 2018 06:36 PM

    For the last few months the JO economic pundits have talked a lot on Moody’s outlook forecasts and it was their barometer to explain the Sri Lanka economy. Now this. Waiting for comments from our new finance minister.

    vithura Tuesday, 20 November 2018 08:42 PM

    Only if he was that clever!

    Dee Tuesday, 20 November 2018 09:32 PM

    The main pundit is 6 feet below! His son has now started tweeting 'pullocks' at least 2-3 times a day. They seem to be all loosing it!

    Alex Tuesday, 20 November 2018 06:41 PM

    My3, MR you are responsible for all these mess. We as citizens, will have to pay a huge price.

    Ronan Tuesday, 20 November 2018 06:49 PM

    Is there any possible way to take legal action against MS and MR for the pause they have created in the economy. The economy was already fragile with MR debt payments looming ahead of us coupled with UNP’s lethargy in dealing with MR and the economy which they were elected for. We need to hold MY3, MR and RW accountable

    Tinkiriya Tuesday, 20 November 2018 08:14 PM

    Why even bother ranking? Very soon it will be under China if not already.

    Keeraipidi Tuesday, 20 November 2018 08:23 PM

    Await more such news. Even the 15 billion loan is on hold already, I was able to read a couple of days ago. Not only because of the current situation but also because two of the three main condions are pending. Homework not yet done by My3 and RW because of their long-term skirmishes.

    punchi Tuesday, 20 November 2018 09:22 PM

    The situation can be put right - the Army Commander should put a word of warning into MY3`s ears to step back!Or face the consequences, which the commander, if he is apatriot, can use his imagination.

    intellectual Wednesday, 21 November 2018 08:22 AM

    the last thing the country needs is a military coup. don't even think about it.

    Dee Tuesday, 20 November 2018 09:30 PM

    "SANEEPADA ? "

    Safeek Wednesday, 21 November 2018 08:59 AM

    In Opinion From the So called Economic King Dr. Bandula Gunawardena? P


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