Good Standing

Fitch Ratings Lanka Ltd (FRL) assigns BBB+ (sri) (Triple B plus) national rating for Implied Long-term unsecured Senior Debt of People’s Bank (PB). Fitch Ratings Lanka Ltd (FRL) assigns BBB+ (sri) (Triple B plus) national rating for Implied Long-term unsecured Senior Debt of People’s Bank (PB). BBB+ (sri) long-term rating indicates that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions is more likely to impair this capacity, Fitch said in a statement on Thursday.

PB’s rating reflects its eminent position as the second largest bank in Sri Lanka, its high systemic importance and 92% state ownership. The bank accounts for a significant market share of deposits.

PB has undergone fairly substantial reform since 2000, achieving considerable improvements in operations. The impact on PB’s financial profile has been encouraging.

The bank has recorded net profits since 2001, and erased its negative net worth position in March 2004.

Nonetheless, the process is yet incomplete, with the bank sti