S&p global ratings, Financial services company

S&P Global Ratings on Monday affirmed its long-term foreign and local currency sovereign credit ratings on Sri Lanka at CCC-plus.It also affirmed short-term foreign and local currency credit ratings at C. The transfer and convertibility assessment is CCC-plus. The outlook remains stable, said S&P, reflecting that risks to Sri Lanka are relatively balanced over the next 12 months.The threat of external deterioration is partially offset by the country's access to official funding and accommodative macroeconomic policies which are likely to boost domestic demand recovery.The ratings reflect S&P's assessment that risks to debt-servicing capacity remain elevated and the government's access to external financing is increasingly dependent on official support and favourable economic and financial conditions.The country's relatively modest income levels, weak external profile, sizable fiscal deficits, heavy government indebtedness and hefty interest payment burdens significantly constrain the ratings.While the economy is likely to expand this year, said S&P, uncertainty over the Covid-19 pandemic fallout in Sri Lanka and the surrounding region poses significant headwinds to economic activity and recovery in sectors such as tourism."While expansionary macroeconomic policies will provide relief to the economy, they risk further weakening the government's fiscal position and worsening the risks associated with the government's already high debt burden," it said.S&P forecast the economy will expand by 3.7 per cent in real terms in 2021 following the 3.6 per cent contraction in 2020. With better vaccination progress in 2022, it expects real GDP growth to accelerate to 4 per cent and average 4.2 per cent from 2022-24.This will bring per capita income to around 3,900 dollars in 2021, translating into real GDP per capita growth of 2 per cent on a 10-year weighted-average basis.Although this growth is in line with peers at a similar income level, it is substantially below Sri Lanka's potential, said S&P.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

S&p Global RatingsFOLLOW

S&p global ratings, Latest News

New Delhi, June 24 Ratings agency S&P Global Ratings on Thursday lowered India's economic growth forecast to 9.5 ... ...

S&P Global Ratings on Thursday revised its GDP growth forecast for India to 9.5 per cent for the fiscal year ending March 31, 2022 due to a severe Covid-19 pandemic wave. ...

A twin shock of rising price pressures and interest costs globally may almost double the proportion of corporate loss-makers within two years, according to a global stress-test analysis published by S&P Global Ratings on Tuesday. ...

S&P Global Ratings said on Monday the world's biggest battery producers globally face substantial upside and downside risks to ratings. ...

S&P Global Ratings on Friday revised its rating outlook on ICICI Bank Ltd to stable from negative. ...

Asia's carbon cutting will be critical to the effort to reduce global warming as the region releases more carbon dioxide than rest of the world combined, S&P Global Ratings said on Monday. ...

Credit losses are set to fall across most Asia Pacific banking systems over the next two years, S&P Global Ratings said on Tuesday. ...

S&P Global Ratings on Monday affirmed its long-term foreign and local currency sovereign credit ratings on Sri Lanka at CCC-plus. ...