Sri Lanka’s Bank of Ceylon downgraded to RD

Fitch Ratings has downgraded the rating of Sri Lanka’s Bank of Ceylon’s foreign currency rating to ‘Restricted Default’ from ‘CC’ after earlier downgrading the sovereign rating to RD after the country defaulted on most of its external debt.

“Fitch Ratings has been made aware of missed payments on BOC’s foreign-currency obligations which underpins our rating action…” the agency said.

“We believe the foreign-currency funding and liquidity profile is highly stretched, and also believe this is exacerbated by the sovereign’s debilitated credit profile.”

Read more on Economy Next