Fitch Ratings Lanka Ltd. will adopt a change in the rating process of any upcoming debt issuance ratings for the Sri Lankan domestic bond market. Fitch will assign “expected ratings” followed by “final ratings” for Sri Lankan National ratings.
Where a rating is referred to as “expected”, alternatively referred to as “expects to rate” or suffixed as (EXP), this indicates that a full rating has been assigned based upon the agency’s expectations regarding final documentation, typically based upon a review of the final draft documentation provided by the issuer.
If such final documentation is received and is as expected, the expected rating will typically be converted to a “final rating”.
However, this may not be the case where the expected rating is withdrawn in the intervening period. Similarly, the final rating may not be assigned at the same level as the original expected rating, where the expected rating has been subject to rating action in the intervening period.
While expected ratings typically convert to final ratings within a short time, as determined by the issuer’s decisions regarding timing of transaction closure, in the period between assignment of an expected rating and a final rating, expected ratings may be raised, lowered or placed on Rating Watch or withdrawn, as with final ratings.