Fitch Ratings-London-01 February 2010: Fitch Ratings has today assigned Seychelles Long-term foreign and local currency Issuer Default Ratings (IDRs) of 'B-' and 'B' with Positive Outlooks, respectively. Fitch has also assigned Seychelles a Country Ceiling of 'B-' and a Short-term foreign currency IDR of 'B'.

"Seychelles' newly-assigned ratings signal its emergence in January 2010 from a default event after the successful conclusion of a debt exchange with the holders of its USD230m Eurobond and EUR55m promissory note," says Purvi Harlalka, Associate Director in Fitch's Sovereigns group. "The Positive Outlook reflects the potential for creditworthiness to improve, given continued strong implementation of the authorities' impressive reform programme".

Following the debt exchange and earlier write-offs from the Paris Club and other bilateral creditors, the maturity profile of external public debt is significantly improved and the debt burden materially lowered to a projected 50% of GDP in 2010 from 144% of GDP in 2008. The sovereign's immediate financing needs have been significantly reduced to less than USD30m per annum (3% of GDP) over 2010-11.