Rate Card

Sri Lanka has only one active rating agency, and a few dozen ratings.
India has nearly 1400 ratings and four agencies. In our Q and A this week, the Money Report speaks to Amit Tandon, Head of Fitch Ratings in India. Sri Lanka has only one active rating agency, and a few dozen ratings.
India has nearly 1400 ratings and four agencies. In our Q and A this week, the Money Report speaks to Amit Tandon, Head of Fitch Ratings in India. Q. We first asked Mr Tandon whether he saw any common constraints to the wider use of ratings in the two countries.

If you look at it over a period of time, I think there are a lot of similarities between what was happening in India in the late 80’s early 90’s, and what trends we are seeing in Sri Lanka now. So I guess it’s a question of time before the market for ratings, as well as for corporate bonds, is a lot more vibrant in Sri Lanka than what it is today.

Q. Anything that we could do to overcome this situation?

Well it’s very difficult. If you look at it, bond markets are in one sense a lot more difficult to grow than the equity markets, but I guess it’s a combination of things. One of course is you need a fairly vibrant government security market.

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