Sri Lanka Rating Upgrade Expected in the Next Review in May

07th February 2011, www.news360.lk

Sri Lanka is well on course to get a rating upgrade during this year, says the Central Bank.

Its Deputy Governor K. G. D. D. Dheerasinghe said “we are pretty sure of a rating upgrade during the next rating review in May”.

Dheerasinghe who heads the Central Bank’s Sovereign Ratings Committee appointed to work towards improving the “country rating” added “we expect the rating to move to BB- during this year“.

Sri Lanka plans to have a round of meeting with Fitch, S&P and Moody’s during April this year to discuss the next rating review.

At present Fitch has assigned a B + rating with a positive outlook, while S&P has given a B+ rating with a stable outlook.

Meanwhile the Moody’s who started rating Sri Lanka since last year also assigned a rating of B+ with a stable outlook.

Central Bank raised a sovereign bond of US$ 1 billion during the year 2010 at a rate of 6.25%.

Dheerasinghe said “It is now trading below 6% in the secondary market”.

He pointed out this situation is very good for a country which has a B+ rating.

Sri Lanka is planning to raise its country rating to a “BBB –“by 2015, which is the minimum investment grade.

“When people invest they look at the rating” added Dheerasinghe.

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