Fitch downgrades Laos

Fitch Ratings said it downgraded Laos’ long-term foreign-currency issuer default rating to CCC from B-.

“The downgrade of Laos’ rating to CCC reflects deepening external liquidity pressures as a result of the coronavirus shock and the sovereign’s large debt maturities. The authorities have secured some new financing in recent months, but their financing options have nevertheless narrowed and foreign-exchange buffers remain low. A projected deterioration in the fiscal deficit in line with Fitch’s forecast will increase near-term financing needs. These developments have diminished the ability of the sovereign to meet its debt service obligations, in Fitch’s view,” the agency said in a press release.

The company has about $500 million in debt due before the end of the year and another $1.1 billion due over four years.

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