Moody's Raises Sri Lanka's Rating After Debt Overhaul Approval

COLOMBO (News 1st) - Credit ratings agency Moody's on Monday raised Sri Lanka's long-term foreign currency issuer rating to 'Caa1' from 'Ca' with a stable outlook, after the country's creditors approved a $12.55 billion debt overhaul last week.

Moody's said, "Sri Lanka’s credit fundamentals have improved over the past two years... external vulnerability and government liquidity risk have both declined from elevated levels."

The rating action marked the conclusion of a review Moody's initiated last month, in which it had indicated a possible upgrade.

Fitch Ratings also upgraded Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating to 'CCC+', from 'Restricted Default'.