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Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Sept 29, 2011 (LBO) – Fitch Ratings Lanka has confirmed DFCC Bank’s (DFCC) National Long-Term Rating at ‘AA(lka)’ with a stable outlook. The rating agency has also confirmed DFCC’s senior debentures at ‘AA(lka)’ and subordinated debentures at ‘AA-(lka)’, a statement said.

“The ratings are driven by DFCC’s strong capitalisation, supported by its sustained solid profitability on the back of an improving economic and operating environment.

“The ratings also factor in DFCC’s high exposure to risky long-term project finance, reliance on long-term bilateral and multilateral funding sources and the consequent need for higher capitalisation, relative to peers.”

The full ratings report follows:

Fitch Ratings-Colombo/Singapore-29 September 2011: Fitch Ratings Lanka has affirmed DFCC Bank’s (DFCC) National Long-Term Rating at ‘AA(lka)’ with a Stable Outlook. The agency has also affirmed DFCC’s senior debentures at ‘AA(lka)’ and subordinated debentures at ‘AA-(lka)’.

The ratings are driven by DFCC’s strong capitalisation – consolidated Tier 1 capital adequacy ratio of 24.2% as of end-June 11, supported by its sustained sol