Sri Lanka’s rating cut at S&P Global to reflect default risk

Bloomberg

Sri Lanka’s credit rating was pushed further into junk at S&P Global Ratings, which cited the nation’s deteriorating fiscal position as a risk to the sovereign’s ability to service debt.
The country’s long-term foreign-currency credit rating was cut to CCC+ from B-, with a stable outlook, according to a statement from S&P. Sri Lanka’s credit score is now the same as the one assigned to Argentina, Mozambique and Belize.
“We lowered our ratings on Sri Lanka based on our assessment that risks to debt servicing capacity have risen, as the government’s access to external financing has become increasingly dependent on favorable business, economic, and financial conditions,” the ratings company said.