Parental Support

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Sept 29, 2011 (LBO) – Fitch Ratings Lanka has confirmed DFCC Vardhana Bank Limited’s (DVB) National Long-Term Rating at ‘AA-(lka)’ with a stable outlook. The rating agency has also confirmed the bank’s subordinated debentures at ‘A+(lka)’.

“The ratings reflect Fitch’s expectation that support would be forthcoming from its parent, DFCC Bank, should it be required,” a statement said.

“The two banks share a common franchise, have closely integrated operations, and provide inputs to key decision-making committees of each other.”

The full ratings report follows:

Fitch Ratings-Colombo/Singapore-29 September 2011: Fitch Ratings Lanka has affirmed DFCC Vardhana Bank Limited’s (DVB) National Long-Term Rating at ‘AA-(lka)’ with a Stable Outlook. The agency has also affirmed the bank’s subordinated debentures at ‘A+(lka)’.

The ratings reflect Fitch’s expectation that support would be forthcoming from its parent, DFCC Bank (DFCC; ‘AA(lka)’/Stable), should it be required. DVB is almost fully owned (a 99.1% stake) by and strategically important to DFCC in expanding the group’s product offering, and accounted for 36% of group assets at end-