Intact Core

May 12, 2009 (LBO) - Fitch Ratings Lanka said it has confirmed the 'AA+(lka) national long-term rating of Commercial Bank, Sri Lanka's largest private bank, with a stable outlook. It said in a statement the rating reflects the bank's sustained strong financial profile amongst local commercial banks.

Fitch has also confirmed Commercial Bank's individual rating at 'D' and support rating at '5', as well as the 'AA(lka)' rating of the bank's subordinated debentures.

Fitch said that in spite of the impact of payments on oil derivatives, cushioned to some extent by the profit on the disposal of former associate, Commercial Leasing Company, Commercial Bank's core profitability remained intact.

Fitch estimated that the potential liability arising from oil derivative transactions could decrease Commercial Bank's 2008 financial year end equity/assets to about 8.4 percent, although it said this too compares favourably against most of its 'AA'-rated peers.

The bank's ROA (Return on Assets) remained at 1.7 percent in the 2008 financial year and above the 1.1 percent for the sector.

The profitability of the bank's Bangladesh operation is higher with an ROA of 2.5 per

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