BRIEF-S&P Says Sri Lanka Local Currency Ratings Lowered To 'SD' From 'CC/C'

BY Reuters | CORPORATE | 09/19/23 06:47 AM EDT

Sept 19 (Reuters) - S&P:

* S&P SAYS SRI LANKA LOCAL CURRENCY RATINGS LOWERED TO 'SD' FROM 'CC/C'

* S&P: ALSO LOWERED TO 'D' ISSUE RATING ON SRI LANKA'S OCTOBER 2023 LOCAL CURRENCY BOND

* S&P- AFFIRMED OTHER RATINGS ON SRI LANKA, INCLUDING 'SD' LONG-TERM FOREIGN CURRENCY RATING

* S&P SAYS LOWERED LOCAL CURRENCY LONG-TERM RATING ON SRI LANKA AFTER GOVERNMENT'S CONFIRMATION OF DOMESTIC DEBT RESTRUCTURING EXERCISE

* S&P: VIEW SRI LANKA'S DEBT RESTRUCTURING AS DISTRESSED RATHER THAN OPPORTUNISTIC DUE TO GOVERNMENT'S VERY HIGH INTEREST BURDEN, LOCAL CURRENCY DEBT STOCK

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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