Thu, 25 Apr 2024 Today's Paper

Extraordinary State support no longer factored in BOC, People’s Bank ratings: Fitch

16 August 2021 01:16 am - 0     - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings last week said it no longer factors in extraordinary support into the ratings of Bank of Ceylon (BOC) and People’s Bank despite their strong State linkages, because the sovereign’s ability to provide extraordinary support is severely constrained.


“As a result, the National Ratings on these banks are now driven by their intrinsic credit profiles rather than sovereign support,” Fitch said. 


All three global rating agencies downgraded Sri Lanka’s sovereign rating last year on heightened risks the country faces in honouring its external obligations. Fitch maintains a ‘CCC’ rating on Sri Lanka’s sovereign.


Sri Lanka has at least US$ 4 billion in external debt services each year until 2025. Although the country has never defaulted on its loan repayments, next year will be decisive if no new inflows materialise, economists say.


“The National Ratings on Sri Lankan banks remain constrained by the sovereign credit profile (CCC). The highest National Rating for domestic banks with ratings driven by their intrinsic credit profiles is ‘AA-(lka)’. 


This is the highest point on national scale that corresponds to an international scale rating of ‘CCC’ according to Fitch’s National Ratings Correspondence Table for Sri Lanka,” the rating agency said. 
Fitch maintains ‘AA-‘ ratings on BOC and People’s Bank with Stable outlooks. 


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 0

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka