Seylan Bank has secured an A-(sri) national rating for its long-term senior debt from Fitch Ratings Lanka.
At the sametime, Fitch has also given Seylans outstanding subordinate debentures a BBB+ (sri) rating.rn
rnIn term of priority, deposit holders and senior debt obligations are ranked higher than subordinated debentures. Though debenture holders rank above preference and ordinary shares. rn
rnHence, debentures are ranked a notch lower than Seylans coproate rating.rn
rnAn A- (sri) rating denotes a low expectation of credit risk. It shows that Seylan has the capacity to meet its financial commitments on time. But the Bank is still vulnerable to external changes or economic conditions. rn
rnFitch says Seylans ratings reflects its relatively large size within the domestic banking system, its core deposit base, and wide market presence. rn
rnldblquote However, the rating also reflects the banks relatively poor asset quality and weak capital position,
dblquote the statement said. rn