COLOMBO, Oct. 9 (Xinhua) -- Fitch Ratings announced on Wednesday that they may upgrade Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) from Restricted Default (RD) status once the country completes a commercial debt restructuring.

Fitch has rated Sri Lanka's Long-Term Foreign-Currency IDR at RD since May 2022, according to the press release.

The post-default rating for Sri Lanka will depend on Fitch's evaluation of its credit profile, the agency stated.

In September 2023, Fitch upgraded Sri Lanka's Long-Term Local-Currency IDR to "CCC-," reflecting the completion of the domestic debt optimization plan related to local-currency debt.

On Oct. 4, Sri Lanka's Ministry of Finance announced that consultations with the IMF and the country's Official Credit Committee had been successfully concluded, suggesting that policy changes are unlikely to jeopardize the IMF program or the debt restructuring agreement reached under the previous administration, Fitch noted.

The Ministry also indicated that the consultation confirmed that the preliminary agreement adheres to the principle of equitable treatment between official creditors and bondholders, and aligns with the IMF program's terms.

Fitch views this as a positive development for the prospects of the restructuring process. Enditem

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