Child’s guide to credit rating downgrade: A warning not to be ignored | Daily FT

Aseni, the wiz kid who is interested in everything that is economic, has been dismayed by media reports that Sri Lanka Government’s long term international borrowings have been downgraded by Fitch Ratings from B- to CCC. She asked her Grandpa, Sarath Mahatthaya, an ex-officer of the Ministry of Finance, for a clarification. The following is the discussion that took place between them: Aseni: Grandpa, I read in the papers that Fitch Ratings had downgraded Sri Lanka Government’s long term international borrowings from B- to CCC. Some papers had projected it as one of the biggest catastrophes tha…

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