Air101: S&P downgrades SriLankan Airlines bond after default

13 February, 2023

S&P downgrades SriLankan Airlines bond after default

Ratings agency S&P Global on Monday cut its long-term issue rating on state-owned SriLankan Airlines' foreign currency-denominated bond after the airline was unable to meet an interest payment and defaulted on a paper.

"We lowered the issue ratings on the SLA 2024 bond to 'D' from 'CC' because both the issuer and government of Sri Lanka, as guarantor, missed a coupon payment of about US$6.1 million," the ratings agency said in a statement on Monday.

SriLankan Airlines defaulted on a $175 million bond as it was unable to meet a $6 million interest payment, its chairperson told Reuters on Thursday.

S&P affirmed the other ratings on Sri Lanka and said that the outlook on the country's long-term local currency rating is negative.

Reporting by Akriti Sharma in Bengaluru

Jason Shaw.

Jason Shaw's love of the aviation industry started at a young age when he used to watch the whirlybirds of Bristow Helicopters coming and going from the garden of his Surrey childhood home. Since those days he's worked in a number of key areas within the aviation industry from airlines, travel agents, holiday companies and product selection to reporting on it for local radio and making video travel brochures.

Jason is also an experienced broadcaster, having presented on radio, television, corporate videos and video travel brochures.

He's an avid reader and has also written a number of books, articles, features and reports.

Jason loves to travel, eat cheesecake and his favourite destinations include Port Douglas, Singapore and Copenhagen.

Joshua Jordan.

Josh loves to travel and has a passionate interest in the airline industry. He's worked in both travel and the media for a number of years. His voice can often be heard on Internet-based radio stations as well and the odd commercial! The destination he calls his favourite is - New York.

Adam Shaw

Adam is the youngest member of the team, no relation to Jason and like the rest of the team, he has a keen interest in airlines, aircraft and aviation. His favourite destination is Prague and has just started taking flying lessons.

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13 February, 2023

S&P downgrades SriLankan Airlines bond after default

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