Fitch Ratings upgraded its rating for Bank of Ceylons (BOC) Implied Long-term unsecured Senior Debt to SL AA (S L Double A) from a SL AA- (S L Double A minus), reflecting the State baking giants financial profile over the last couple of years.
SL AA long-term rating denotes a very low expectation of credit risk.
The rating indicates a very strong capacity for timely payment of financial commitments.
This capacity is not significantly vulnerable to foreseeable events.rn
rnFitch said BOCs profitability and asset quality has improved, while the bank has continued to build its loan loss reserves. rn
rnldblquote BOCs provisioning standards and its net NPL position is considerably stronger compared to most other domestic banks.
rnThe rating also reflects BOCs pre-eminent position as the largest bank in Sri Lanka with a leading share of customer deposits, its high systemic importance and 100% state ownership. rn
rnThe banks exposure to the government and SOEs has reduced substantially