Standard and Poor’s (S&P) said it was keeping Sri Lanka’s sovereign rating at selective default because a defaulted SriLankan Airlines bond has not yet been restructured, but has rated newly issued restructured bonds at CCC+.
The 175 million dollar SriLankan Airlines bond is guaranteed by the government and remains in default.
“We could raise our long-term foreign currency sovereign credit rating once Sri Lanka completes the restructuring of its remaining foreign currency-denominated commercial debt, including the government-guaranteed bond that SriLankan Airlines issued,” S&P Global Rating said in a statement.
“The rating would reflect Sri Lanka’s creditworthiness post-restructuring.”
However, the new bond given in exchange for defaulted sovereign bonds have have been rated CCC+.
