Fitch Takes Action on 8 Sri Lankan Banks’ National Ratings on Updated Scale After Sovereign Upgrade

Lanka Business Online reports that Fitch Ratings changed or confirmed national long-term ratings or outlooks for eight Sri Lankan banks after revising its domestic rating scale following Sri Lanka’s sovereign rating upgrade. The outlet says Fitch’s review left the ratings of the country’s other banks unchanged.

Lanka Business Online reports that Bank of Ceylon and People’s Bank each moved from AA-(lka) to AA+(lka), while Commercial Bank of Ceylon moved from AA-(lka) to AA(lka); Fitch gave all three stable outlooks. The outlet says Nations Trust Bank retained its A(lka) rating, with its outlook changing from stable to positive, and Union Bank retained BBB-(lka), with a negative outlook.

Lanka Business Online reports that Cargills Bank moved down from A(lka) to A-(lka) and received a negative outlook. The outlet says Housing Development Finance Corporation Bank of Sri Lanka remained at BB+(lka), and State Mortgage & Investment Bank remained at BB(lka); both stayed on Rating Watch Positive.

Lanka Business Online explains that these national ratings place issuers in relation to other borrowers in Sri Lanka and are intended to help domestic investors assess differing levels of risk. The outlet says Fitch marks Sri Lanka’s national scale with “(lka)” and that these ratings cannot be compared with its international ratings or national scales used in other countries.

Lanka Business Online reports that Fitch’s scale update followed an upgrade, on 22 September, of Sri Lanka’s Long-Term Local-Currency Issuer Default Rating from CCC+ to B-, with a stable outlook. The report does not give the year.

Written automatically by AI from the outlets’ own reports, and not reviewed by an editor. It can be wrong — the original report is the authority.