S&P downgrades Sri Lankan Airlines bond to ‘D’

S&P Global Ratings has downgraded the SriLankan Airlines government guaranteed bond to ‘D’ from ‘CC’ after it failed to pay a coupon.

“The government of Sri Lanka, as guarantor, has also failed to make the coupon payment, upon the expiry of the 30-day grace period beginning Dec. 25, 2022,” S&P said.

“We lowered the issue ratings on the SLA 2024 bond to ‘D’ from ‘CC’ because both the issuer and government of Sri Lanka, as guarantor, missed a coupon payment of about US$6.1 million,” S&P said.

“This payment was originally due December 2022, and the grace period expired in January 2023.

Read more on Economy Next