Libya Debt Downgraded Three Notches to 'BB' by Fitch Amid Turmoil
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Fitch Ratings downgraded Libya's long-term foreign and local currency default ratings by three notches from 'BBB' to 'BB', as the ratings remain on ratings watch negative.
The agency also downgraded the countries short-term foreign currency rating from 'F3' to 'B'.
"The downgrades reflect Fitch's view that the increasingly chaotic political and economic conditions in Libya are no longer consistent with an investment grade rating," says Charles Seville, Director in Fitch's Sovereign Ratings Group. "In addition, a significant portion of the sovereign's substantial foreign assets, which were key in underpinning its previous rating, have now been frozen by international sanctions."
The agency said that RWN status reflects the uncertainty around the country's politics and security.
The agency also downgraded the countries short-term foreign currency rating from 'F3' to 'B'.
"The downgrades reflect Fitch's view that the increasingly chaotic political and economic conditions in Libya are no longer consistent with an investment grade rating," says Charles Seville, Director in Fitch's Sovereign Ratings Group. "In addition, a significant portion of the sovereign's substantial foreign assets, which were key in underpinning its previous rating, have now been frozen by international sanctions."
The agency said that RWN status reflects the uncertainty around the country's politics and security.
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