S&P pushes Sri Lankan bonds deeper into junk territory
Global rating agency S&P Global on Monday lowered its rating for Sri Lankan bonds to ‘D’, which stands for default, after missed interest and principal payments.
The South Asian country, which defaulted on a bond earlier this year and has $12 billion in foreign debt to private creditors, has experienced the worst financial crisis in its independent history.
The freeze on Sri Lanka’s foreign government debt prevents the payment of interest and principal obligations on the government’s international government bonds.
S&P said it did not expect the Sri Lankan government, which defaults on some foreign currency obligations, to make the bond payments within 30 calendar days of their maturity dates.
