Moody’s assigns B1 Rating to Sri Lanka

Moody’s Investors Service assigned a B1 foreign currency issuer rating to the Sri Lanka Government. The outlook on the rating was stable. The important considerations for the ratings decision were the end of Sri Lanka’s civil conflict and a structural improvement in its economic prospects.

According to Moody’s, sustained track record of rapid economic growth with reasonable external balance as well as restrained inflation could support an improved assessment of the country’s economic strength.

Other methodological factors for the rating were medium institutional strength, low Government financial strength and medium susceptibility to event risk.

The stable outlook on the B1 foreign currency sovereign rating encapsulates Moody’s expectation that the re-integration of the Northern and the Eastern regions into Sri Lanka’s economy will sustain a higher growth rate with single-digit inflation without destabilizing the external current account position, said a Moody’s Vice President and lead sovereign analyst for Sri Lanka Aninda Mitra.

(RTTNews)