July 08, 2011 (LBO) – Fitch Ratings Lanka has confirmed the national long-term ratings of Bank of Ceylon (BOC), People’s Bank (PB), Commercial Bank of Ceylon (CB) and Sampath Bank (SB). The rating agency also confirmed and simultaneously withdrawn the individual and support ratings of the four banks as the ratings are no longer relevant to Fitch’s coverage.
“BOC’s and PB’s ratings reflect their high systemic importance as the largest and second-largest banks of Sri Lanka, their state ownership, and their strong franchise,” Fitch said in a statement.
“The positive outlooks largely reflect the prospect of a potential improvement in the government’s financial profile as indicated by the positive outlook on Sri Lanka’s long-term Issuer Default Rating of ‘B+’, and its consequent increased capacity to provide support to the banks.”
Fitch said CB’s ratings reflect its strong franchise, sound profitability and its strong capital position.
The stable outlook reflects the improvement in the bank’s credit profile in terms of its asset quality and solvency indicators since the third quarter of 2010 and Fitch’s expectation for a further improvement supported by the economic env