(Bloomberg) -- Moody’s Ratings upgraded Sri Lanka’s credit rating, days after the nation concluded debt restructuring of its dollar bonds, which reduces the risk of default on future notes.
The South Asian nation has been upgraded to Caa1 from Ca on Monday, according to a statement by the rating agency. While governments with that rating are still judged as very high risk by Moody’s, it is a notable step for the island nation and a second upgrade it has received this month.
Last week, Fitch had upgraded the country after it gained extensive support from private creditors to restructure its international bonds. Moody’s had last month placed Sri Lanka on review for the ratings upgrade.
“Sri Lanka’s credit fundamentals have improved over the past two years,” analysts Anushka Shah and Gene Fang said in Monday’s statement. “External vulnerability and government liquidity risk have both declined from elevated levels.”
READ: Sri Lanka Bondholders Back $12.6 Billion Debt Restructuring
--With assistance from Jorgelina do Rosario and Anusha Ondaatjie.
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