National rating scale recalibrated following sovereign downgrade

• Fitch Ratings says move will result in rating actions for some issuers with national ratings

Fitch Ratings has recalibrated its Sri Lankan National Rating scale to reflect changes in the relative creditworthiness among Sri Lankan issuers, following Fitch’s downgrade of the country’s sovereign rating to ‘CCC’ from ‘B-’ on 27 November 2020. 

Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC’ or below.

The recalibration will result in rating actions for some issuers with Sri Lankan national ratings. Fitch said these rating revisions would be announced soon.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk.

Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’.  Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. 

National scales are not comparable with Fitch’s international ratings scales or with other countries’ national rating scales.