INSUBCONTINENT EXCLUSIVE:
The Outlook is Stable.At the same time, Fitch has affirmed the National Long-Term Ratings of the following banks, removed them from RWN and
were not considered in this review.A full list of rating actions is at the end of this rating action commentary.KEY RATING DRIVERSDownside
depreciation as well as any immediate funding and liquidity stresses.Manageable Risks from Foreign-Currency Bonds: The restructuring of Sri
total assets at end-1H23) and high provision coverage
rating reflects downside risks from its increasing size relative to that of its ultimate parent, CT Holdings PLC (CTH), which could
the bank would default on or seek a restructuring of its local-currency denominated senior obligations to non-government creditors.National
restructuring of the remainder of the foreign-currency sovereign debt.National ratings of all banks, except CBLPositive rating action on the
and PB have a 1.78% equity stake each in Fitch Ratings Lanka Ltd
No shareholder other than Fitch, Inc
is involved in the day-to-day rating operations of, or credit reviews undertaken by, Fitch Ratings Lanka Ltd.OTHER DEBT AND ISSUER RATINGS:
debt ratings, where assigned
This is in line with our baseline notching for loss severity for this type of debt and our expectations of poor recovery.OTHER DEBT AND
ISSUER RATINGS: RATING SENSITIVITIESSenior and subordinated debt ratings will move in tandem with the National Long-Term RatingREFERENCES
FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATINGThe principal sources of information used in the analysis are described in
100% state shareholding and several related-party transactions with the state and state-owned entities, which has a negative impact on the
It reflects our view that the recent regulatory forbearance measures announced by the Central Bank of Sri Lanka could distort the true
solvency and liquidity position of the bank, thereby limiting financial transparency
This has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors.Unless otherwise disclosed
This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which
they are being managed by the entity
in the rating decision.--Fitch--
