Fitch Ratings has revised the National Long-Term Ratings of Sri Lankan financial institutions following the recalibration of the agency’s Sri Lankan national rating scale.
The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch’s downgrade of the sovereign rating to ‘B-’/Negative from ‘B’/Negative on 24 April 2020.
Revision ratings are used to modify ratings for reasons that are not related to credit quality in order to reflect changes in the national rating scale. National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk.
Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’. Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales.
The National Ratings of the Sri Lankan banks consider their creditworthiness relative to other issuers in the country.
The recalibration of the Sri Lankan National Rating scale has resulted in the upward revision of the National Long-Term Ratings of the following Sri Lankan financial institutions:
Banks
Commercial Bank of Ceylon PLC (CB) to ‘AA+(lka)’ from ‘AA(lka)’ Hatton National Bank PLC (HNB) to ‘AA+(lka)’ from ‘AA-(lka)’ Sampath Bank PLC to ‘AA-(lka)’ from ‘A+(lka)’ Seylan Bank PLC to ‘A(lka)’ from ‘A-(lka)’ Cargills Bank Limited to ‘A+(lka)’ from ‘A-(lka)’ and Amana Bank PLC to ‘BB+(lka)’ from ‘BB(lka)’
Non-Bank Financial Institutions
Serendib Finance Limited to ‘AA-(lka)’ from ‘A+(lka)’ (please see http://www.fitchratings.com/site/pr/10125353) HNB Finance Limited to ‘AA-(lka)’ from ‘A(lka)’ Siyapatha Finance PLC to ‘A(lka)’ from ‘A-(lka)’and Richard Pieris Finance Limited to ‘A-(lka)’ from ‘BBB+(lka)’
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