S&P Global Ratings maintained Sri Lanka's selective default (SD/SD) long- and short-term foreign currency and CCC+/C long- and short-term local currency sovereign credit ratings, according to a Friday release.

The rating agency also placed CCC+ ratings on some of the country's newly issued sovereign bonds.

The rating actions come as Sri Lanka finished the distressed debt exchange of most of its $12.55 billion in outstanding international sovereign bonds in place of the new notes.

Bondholders accounting for 97.8% of the total outstanding bonds agreed to the exchange offer, which is expected to result in about $9.5 billion in debt service payment reduction, among other relief.

However, the government is still in the process of restructuring a $175 million bond it guarantees, which is still in default.

The long-term foreign currency rating outlook is stable, with improvements in the country's debt profile due to the restructuring balancing fiscal risks from economic and fiscal pressures in the next 12 months, according to S&P.

Shifts in the status of the country's local currency debt as driven by the government's fiscal performance could lead to future rating actions, S&P said.