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Asset Quality

Aug 29, 2011 (LBO) - Fitch Ratings Lanka has confirmed Sampath Bank's (SB) National Long-Term rating at 'AA-(lka)' with a positive outlook.
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"The affirmation reflects SB's strong asset quality and profitability, its comfortable equity buffer maintained against future loan losses, as well as its rapid growth from 2010," the rating agency said in a statement.

The positive outlook is supported by continuous improvements in the bank's credit metrics supported by ongoing structural changes since 2009 with tighter credit controls, improved recovery focus and better risk management.

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It is also supported by the bank's growing franchise and market share in terms of bank sector deposits, loans and assets.

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The full Fitch statement follows:

Fitch Ratings Lanka has affirmed Sampath Bank PLC's (SB) National Long-Term rating at 'AA-(lka)'. The Outlook remains Positive.

The affirmation reflects SB's strong asset quality and profitability, its comfortable equity buffer maintained against future loan losses, as well as its rapid growth from 2010.

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The retention of the Positive Outlook is driven by continuous improvements in the bank's
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