Fitch changes rating scales for Sri Lanka

Apr.25 (LBO) – Fitch Ratings Lanka Tuesday announced changes to their national ratings scale for Sri Lanka to be line with the agency’s global definitions. National ratings are designed for use of investors in local markets, and also give an indication as to the creditworthiness for rated entities in the country.

The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk, Fitch said.

As the rating categories have been maintained (Highest Credit Quality/ High Credit Quality/ Adequate Credit Quality etc.), these remain consistent with existing practices in Sri Lanka.

At the same time, Fitch is revising the rating identifier for National ratings issued in Sri Lanka to ‘lka’ from the earlier used suffix of ‘sri’.

For instance, Dialog Telekom will now carry AAA (lka) instead of the earlier AAA (sri)

This is to fall in line with Fitch’s policy of using internationally recognised identifiers, in this case the ISO country codes, which is ‘LKA’ for Sri Lanka.

The new ratings definitions and the change to National rating identifiers will not by themselves affect any of the existing ratings nor will they bring about a change in Fitch’s rating methodology.

For further
details on and definitions of the new and existing Sri Lankan National ratings,
please refer to

www.fitchratings.lk