Dec 11 (Reuters) – Rating agency S&P has slashed Sri Lanka’s credit rating to “CCC+/C” from “B-” on concerns that risks to the island nation’s debt servicing capacity have risen as the COVID-19 pandemic has squeezed the government’s capacity to generate earnings.
The agency said in a statement on Friday it has a stable outlook on the South-Asian country.
“With the implementation of expansionary budget measures in Sri Lanka, we expect the country’s fiscal position to deteriorate materially over the next few years in the absence of favorable economic and financial conditions,” S&P said.
(Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)
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