Thursday, 28 August 2014

LRA assigns BBB+/P2 rating to HDFC Bank

Lanka Rating Agency has upgraded financial institution ratings of Housing Development Finance Corporation Bank (HDFC) to BBB+ and P2 from BBB and P3.

The long term ratings will continue to carry a stable outlook. Concurrently long-term issue ratings of Rs 2 billion secured senior listed debenture (2013/2018) has been upgraded to BBB+ from BBB. Meanwhile, the ratings are upheld by the state's majority ownership of the Bank and the on-going support of the government of Sri Lanka as well as a good capital cushioning level. The ratings are tempered by HDFC's below-average asset quality and its small stature.

HDFC is a licensed specialised bank (LSB) under the Housing Development Finance Corporation Act (No. 7 of 1997) and falls under the purview of the Finance and Planning Ministry.

The GOSL remains its largest shareholder with a 49.73% stake through the National Housing Development Authority (NHDA).
www.dailynews.lk

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