Aug 29, Colombo: Fitch Ratings Lanka today downgraded First Capital Treasuries Limited's (FCT) National Long-term rating to 'A-(lka)' from 'A(lka)', and simultaneously withdrawn the rating at the request of the issuer.

FCT was the only independent primary dealer to have carried a rating by the agency in Sri Lanka.

The downgrade reflects the increased volatility in the domestic interest rate environment over the past two years and the resulting increase on market risk inherently borne by primary dealers. However, the agency notes the conservative trading positions carried by FCT in the last year and the currently low modified duration of 0.7 of the portfolio.