Moody’s revises ratings outlook of BOC, HNB & Sampath Bank to negative


June 21, 2016 (LBO) – Moody’s Investors Service has revised ratings outlooks of three banks in Sri Lanka to negative from stable.

The affected banks are Bank of Ceylon, Hatton National Bank and Sampath Bank.

The rating actions follow the affirmation of Sri Lanka’s B1 sovereign rating, and the change in outlook on the sovereign rating to negative from stable on 20 June 2016.

Moody’s Investors Service has also affirmed the long-term ratings of three banks in Sri Lanka (B1 negative).

In Moody’s view, the operating conditions for Sri Lanka’s banks have weakened because of lower-than-expected-policy effectiveness.

As a result, Moody’s has changed Sri Lanka’s Macro Profile to “Moderate -” from “Moderate”.