Fitch Ratings has affirmed ratings on nine Sri Lankan banks, all with Stable Outlooks.
The Long-Term Issuer Default Ratings (IDRs) on National Savings Bank and Bank of Ceylon (BOC) have been affirmed at ‘BB-’ and their National Long-Term Ratings have been affirmed at ‘AAA (lka)’ and ‘AA+(lka)’, respectively. Fitch has also affirmed the National Long-Term Rating of People’s Bank at ‘AA+(lka)’.
At the same time, Fitch has affirmed the Long-Term IDRS of DFCC Bank and National Development Bank PLC (NDB) at ‘B+’ and their National Long-Term Ratings at ‘AA-(lka)’.
The National Long-Term Ratings of Commercial Bank of Ceylon PLC (Commercial Bank) have been affirmed at ‘AA(lka)’. The National Long-Term Ratings of Hatton National Bank PLC (HNB), Sampath Bank PLC and DFCC Vardhana Bank Ltd. have been affirmed at ‘AA-(lka)’.
The operating environment, which remains potentially volatile, is a key rating driver for the Sri Lankan banking sector. This is a challenge for banks, notwithstanding the current high real GDP growth, which Fitch expects to continue.
While private-sector credit demand is currently muted, the potential for high growth exists given the low overall levels of credit to GDP.
The Support Ratings (SRs) and Support Rating Floors (SRFs) of state-owned National Savings Bank, BOC, and People’s Bank reflect their high importance to the government and high systemic importance. The SRs and SRFs of privately-owned DFCC and NDB reflect their lower systemic importance.
The Sri Lanka rupee-denominated subordinated debt of BOC, DFCC, DFCC Vardhana Bank, NDB, Commercial Bank, HNB, and Sampath Bank are rated one notch below their National Long-Term Ratings to reflect the subordination to senior unsecured creditors
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The Long-Term Issuer Default Ratings (IDRs) on National Savings Bank and Bank of Ceylon (BOC) have been affirmed at ‘BB-’ and their National Long-Term Ratings have been affirmed at ‘AAA (lka)’ and ‘AA+(lka)’, respectively. Fitch has also affirmed the National Long-Term Rating of People’s Bank at ‘AA+(lka)’.
At the same time, Fitch has affirmed the Long-Term IDRS of DFCC Bank and National Development Bank PLC (NDB) at ‘B+’ and their National Long-Term Ratings at ‘AA-(lka)’.
The National Long-Term Ratings of Commercial Bank of Ceylon PLC (Commercial Bank) have been affirmed at ‘AA(lka)’. The National Long-Term Ratings of Hatton National Bank PLC (HNB), Sampath Bank PLC and DFCC Vardhana Bank Ltd. have been affirmed at ‘AA-(lka)’.
The operating environment, which remains potentially volatile, is a key rating driver for the Sri Lankan banking sector. This is a challenge for banks, notwithstanding the current high real GDP growth, which Fitch expects to continue.
While private-sector credit demand is currently muted, the potential for high growth exists given the low overall levels of credit to GDP.
The Support Ratings (SRs) and Support Rating Floors (SRFs) of state-owned National Savings Bank, BOC, and People’s Bank reflect their high importance to the government and high systemic importance. The SRs and SRFs of privately-owned DFCC and NDB reflect their lower systemic importance.
The Sri Lanka rupee-denominated subordinated debt of BOC, DFCC, DFCC Vardhana Bank, NDB, Commercial Bank, HNB, and Sampath Bank are rated one notch below their National Long-Term Ratings to reflect the subordination to senior unsecured creditors
www.island.lk
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