(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here.
Moody’s Ratings is reviewing Sri Lanka’s sovereign credit rating for an upgrade, as the nation is set to complete the restructuring of its dollar bonds.
The rating company assigned the new dollar notes Sri Lanka is offering to swap for old debt a (P) Caa1 rating, according to a statement. Dollar debt maturing in 2030 rose to the highest since June 2021 on Thursday.
The debt swap reduces “the default risk on new and future issuances,” Moody’s analysts Anushka Shah and Gene Fang said. The government’s debt restructuring and reforms are reducing external vulnerability and liquidity risk, while raising prospects for long-term fiscal and debt sustainability, they added.
Read: Sri Lanka Kicks Off $12.6 Billion Distressed Debt Exchange
The review comes on the heels of Sri Lanka launching a bond exchange offer to complete its dollar-denominated debt restructuring. The country’s new leader Anura Kumara Dissanayake has reiterated the government’s support to the International Monetary Fund program objectives, ensuring policy continuity after the closely watched elections.
(Updates throughout with details)
©2024 Bloomberg L.P.