Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Fitch Upgrades Union & Cargills Banks; Affirms 5 Small & Mid-Sized Sri Lanka Banks
Sat, May 25, 2019, 08:54 am SL Time, ColomboPage News Desk, Sri Lanka.

May 25, Colombo: Fitch Ratings Lanka has upgraded the National Long-Term Ratings of Union Bank of Colombo PLC (UB) to 'BBB-(lka)' from 'BB+(lka)' and of Cargills Bank Ltd (CBL) to 'A-(lka)' from 'BB(lka)'. The Outlooks are Stable.

The agency has also affirmed the National Long-Term Ratings of Amana Bank PLC, Nations Trust Bank PLC (NTB), Pan Asia Banking Corporation PLC (PABC), SANASA Development Bank PLC (SDB) and Housing Development Finance Corporation Bank of Sri Lanka (HDFC).

The rating actions follow Fitch's periodic review of Sri Lanka's small and mid-sized bank peer group. The agency maintains the negative outlook on Sri Lanka's banking sector, as we expect challenging operating conditions to persist in 2019.

Fitch expects the banks' ratings to be weighed down by their high-risk appetites as they pursue above-sector loan expansion in the medium term, which will pressure their already-thin capital buffers. The ratings also take into account these banks' small franchises.

Fitch expects credit risks to linger in 2019 due to the banks' exposure to the more susceptible customer segments at a time when the country faces domestic and external challenges. The banks' profitability metrics are likely to remain weak owing to high impairment losses and effective taxes.

PABC, HDFC, Amana and CBL need to raise equity to meet the enhanced capital requirements by end-2020; capital raising could be more difficult for these banks than for larger peers.

Full statement of Fitch Ratings

 

ColomboPage - Recent 10 Stories ::
Will not allow the country's economy to collapse, PM vows
-- [45 minutes ago]
Mahindra & Mahindra inaugurates first automotive assembly plant in Sri Lanka
-- [1 hour and 13 minutes ago]
Eight suspects arrested over the Madampitiya double murder
-- [9 hours ago]
Enterprise 'Sonduru Piyasa' loan scheme grants over Rs. 5 billion to beneficiaries
Government to provide paddy driers to farmers to increase their earning potential
oDoc expands to 10th factory, signs first Indian client for employee telemedicine coverage
Central Bank releases annual 'Economic and Social Statistics of Sri Lanka - 2019' publication
CCD ordered to investigate two complaints against Gotabhaya regarding a new passport
Sri Lanka commences preliminary work on light rail project
PM emphasizes taking steps to resolve drinking water problem in Jaffna

Copyright © 2000, 2016 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.