(Reuters) – Moody's (NYSE:MCO) has placed Sri Lanka's Ca long-term foreign currency rating on review for an upgrade, the credit ratings agency said on Wednesday, following the government's bond-exchange offer that aims to complete the restructuring of international bonds.
The bond swap, launched on Tuesday, is an important part of the island nation's ongoing $12.55 billion debt restructuring and its efforts to stabilize the economy.
The country had defaulted on its foreign debt for the first time in May 2022, reeling under a severe crisis amid a heavy debt burden and declining foreign exchange reserves.
Moody's also assigned a provisional Caa1 credit rating to Sri Lanka's new U.S. dollar-denominated debt issuances, which are part of its bond-exchange offer.
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