Sampath, HNB discontinue rating deals with Moody’s

Both Sampath Bank PLC and Hatton National Bank PLC (HNB) have decided to discontinue the credit ratings obtained from Moody’s Investors Service.

Sampath Bank last week informed the Colombo Stock Exchange (CSE) of its decision to withdraw from a rating arrangement with Moody’s with immediate effect. HNB will allow its rating arrangement with Moody’s to lapse, Mirror Business learns.

Sources said the decision by the two banks to discontinue their international rating arrangements may have been prompted by the inability to raise foreign funds in the current context.

Moody’s downgraded Sri Lanka’s sovereign rating in September by two notches to Caa1 from B2 citing wide budget deficits, slow reforms and weak institutions.