SINGAPORE – Fitch Ratings has recalibrated its Sri Lankan National Rating scale to reflect changes in the relative creditworthiness among Sri Lankan issuers, following its downgrade of the country’s sovereign rating to ‘CCC’ from ‘B-‘ on November 27, 2020,noting that Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC’ or below.
In a commentary posted on Tuesday (22), Fitch said the recalibration will result in rating actions for some issuers with Sri Lankan national ratings and the rating revisions will be announced soon.
It also noted that national scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk.
Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’, which Fitch had added to reflect the unique nature of the Sri Lankan national scale.
National scales are not comparable with Fitch’s international ratings scales or with other countries’ national rating scales.
-fitchratings.com/ENCL