ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Laos credit downgrade signals 'real' default risk as China looms

Fitch's rare cut to 'CCC' raises possibility of relief from Beijing

Workers in the Laotian city of Luang Prabang build the first rail line linking the country to China in February. Laos is the only Asian country rated "CCC" by Fitch.   © AFP/Jiji

HONG KONG -- Fitch Ratings has downgraded Laos' rating to "CCC" from "B-," meaning that the Southeast Asian nation faces "substantial credit risk" and that default is a "real possibility," according to the agency's definition.

It is rare for a sovereign nation to be rated in the "C" class. In a report issued Wednesday, Fitch admitted that it "typically does not assign outlooks or apply modifiers to sovereigns with a rating of 'CCC' or below."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more