Sri Lankan bond issues to be given expected rating first: Fitch

Feb 08, 2013 (LBO) – Bond issues by Sri Lankan companies will go through a two-step process in the future, where an ‘EXP’ or ‘expected’ rating will be assigned which will then be finalized after documentation and closure, Fitch Ratings said. Fitch said a rating referred to as ‘expected’ is issued on the agencies expectations regarding the final documentation.

“If such final documentation is received and is as expected, the expected rating will typically be converted to a “final rating”, the rating agency said.

“However, this may not be the case where the expected rating is withdrawn in the intervening period.

“Similarly, the final rating may not be assigned at the same level as the original expected rating, where the expected rating has been subject to rating action in the intervening period.”

Fitch said usually ‘EXP’ ratings would be made final within a short time, based on the closure of the issue, but such ratings would also be raised, lowered, withdrawn or placed on rating watch as with final ratings.