Five large Sri Lankan banks are now rated at ‘AA-(lka)’ following Fitch Ratings’ national scale recalibration, reflecting the rating compression for the banks on the national scale.
Fitch revised the National Ratings of Commercial Bank of Ceylon PLC (CB) and Hatton National Bank PLC (HNB) to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative. Bank of Ceylon (BOC) and People’s Bank (Sri Lanka) (PB) were downgraded to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative and are now driven by their intrinsic credit profiles rather than sovereign support.
Sampath Bank PLC (SAMP) was already rated at ‘AA-(lka)’/Stable.
The Operating Environment (OE), which is constrained by the sovereign rating, assesses the level of risk of doing banking business in Sri Lanka and affects the banks’ financial and non-financial rating factors.
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