July 05, 2012 (LBO) – RAM Ratings Lanka has confirmed an ‘AA-‘ domestic long term rating of Merchant Bank of Sri Lanka and ‘P1’ short term rating of the company and a proposed billion rupee commercial paper. The full statement
RAM Ratings Lanka reaffirms MBSL’s ratings at AA-/P1
RAM Ratings Lanka has reaffirmed Merchant Bank of Sri Lanka PLC’s (MBSL or the Company) respective long- and short-term financial institution ratings, at AA- and P1.
Concurrently, the long-term rating of the Company’s LKR 1 billion Senior Unsecured Redeemable Debentures (2011/2015) and the short-term rating of its LKR 500 million Unsecured Commercial Paper (2011/2012) have been reaffirmed at AA- and P1, respectively.
Meanwhile, RAM Ratings Lanka has assigned a short-term P1 rating to MBSL’s proposed LKR 1 billion Commercial Paper (2012/2013). All the long-term ratings have a stable outlook.
The ratings are supported by MBSL’s strong capitalisation and the financial flexibility derived from its parent, the state-owned Bank of Ceylon (BOC). On the other hand, the ratings are weighed down by the Company’s weak asset quality.
MBSL is a 72.14%-owned subsidiary of