Sept 17, 2012 (LBO) – Fitch Ratings has confirmed an ‘AAA(lka)’ rating of Sri Lanka’s Standard Chartered Bank brand based on support from its parent. The bank is facing a 27 billion rupee fine related to an alleged exchange control violation which has been appealed, but Fitch says it is likely that there will be support from the parent to pay the fine.
The full statement is reproduced below:
Fitch Affirms Standard Chartered Bank Sri Lanka at ‘AAA(lka)’; Outlook Stable
Fitch Ratings-Colombo/Mumbai/Singapore-14 September 2012: Fitch Ratings Lanka has affirmed Standard Chartered Bank, Sri Lanka Branch’s (SCBSL) National Long-Term Rating at ‘AAA(lka)’. The Outlook is Stable.
SCBSL’s rating is at the highest of the national rating scale and reflects the credit profile and financial strength of its parent Standard Chartered Bank PLC (SCB). The rating is tied to SCB’s Issuer Default Rating (IDR) of ‘AA-‘/Negative, given SCBSL’s legal status as a branch of SCB and that both are part of the same legal entity. SCB’s rating is higher than Sri Lanka’s IDR of ‘BB-‘/Stable.
SCBSL has appealed against a LKR27bn fine imposed b