Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Fitch Affirms HSBC Sri Lanka Branch at 'AAA(lka)'; Outlook Stable
Thu, Mar 27, 2014, 11:54 pm SL Time, ColomboPage News Desk, Sri Lanka.

Mar 27, Colombo: Fitch Ratings Lanka has affirmed HSBC Sri Lanka Branch's (HSBCSL) National Long-Term Rating at 'AAA(lka)'. The Outlook is Stable.

Below is the Full statement by Fitch Ratings

Fitch Ratings-Colombo-27 March 2014: Fitch Ratings Lanka has affirmed HSBC Sri Lanka Branch's (HSBCSL) National Long-Term Rating at 'AAA(lka)'.The Outlook is Stable.

KEY RATING DRIVERS - NATIONAL RATINGS

HSBCSL's rating is at the highest end of the National Rating scale and reflects the credit profile and financial strength of The Hongkong & Shanghai Banking Corporation Limited (HKSB; Long-Term Issuer Default Rating (IDR): 'AA'-/Stable).

The rating is tied to HKSB's IDR because of HSBCSL's legal status as a branch of HKSB and hence is an extension of the same legal entity as HKSB. HKSB's rating is higher than Sri Lanka's Long-Term Local and Foreign Currency IDRs of 'BB-'/Stable, and as a result, HSBCSL's rating on the National Rating scale is mapped to 'AAA(lka)'. Fitch believes that support from HKSB would be forthcoming if required, subject to any regulatory constraints on remitting money into Sri Lanka.

HSBCSL posted a 6.1% increase in loans in the nine months to end-September 2013 (9M13) due to reduced demand for rupee-denominated loans. HSBCSL's portfolio (64% of total loans at end-2013) mainly focuses on large customers within the corporate segment. Its retail exposures include substantial credit card loans (43% of the retail loan book) due to its leading position in this product.

HSBCSL's capitalisation remained strong even after the transfer of profit to HKSB (Fitch core capital to risk weighted assets of 23.8% at end-9M13). HSBC Group provided 31% of total funding to HSBCSL.

Established in Sri Lanka in 1892, HSBCSL is the largest foreign bank branch in Sri Lanka, and the sixth-largest licensed commercial bank, accounting for 6.1% of banking sector assets at end-9M13.

RATING SENSITIVITIES - NATIONAL RATINGS

A downgrade of HSBCSL rating could result from HKSB's rating falling below Sri Lanka's IDR. Any changes to Fitch's expectation of support from HKSB could also have a negative effect on the rating.

The latest research on HSBCSL is available at www.fitchratings.com and www.fitchratings.lk

ColomboPage - Recent 10 Stories
US Bureau of Democracy, Human Rights and Labor funds $ 500,000 grant for Strengthening Investigative Journalism in Sri Lanka
-- [4 hours ago]
Former Chief Minister Pillayan further remanded till February 24
Matthew Abeysinghe breaks Julian Bolling’s record for most gold at SAG
High level Sri Lanka-Bahrain talks held to renew trade, strengthen bilateral cooperation
Senior Solicitor General Jayantha Jayasuriya selected to be Sri Lanka's next Attorney General
Sri Lanka Speaker receives death threats for refusing demands of joint opposition
Sri Lanka Navy arrests seven local fishermen engaged in illegal fishing
Galagodaaththe Gnanasara Thera further remanded until 16th
Sri Lankan PM decides to directly respond to MPs in parliament
Sri Lanka Supreme Court concludes Bhikku Kathikavath Bill contravenes the Constitution

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.