Rating Action

Feb 08, 2013 (LBO) – An ‘AAA(lka)’ rating of Sri Lanka’s Standard Chartered Bank has been confirmed by Fitch Ratings, with a stable outlook, based on it being part of a lender that has a higher international rating. Fitch says an appeal on a 27 billion rupee fine, which is higher than its equity, imposed by the regulator for alleged foreign exchange control violations is pending.

“Fitch considers it extremely likely that timely support would be available from SCB, should it be required,” Fitch said in a statement.

“Such support would be subject to regulatory restrictions or delays in remitting money into Sri Lanka, although Fitch currently sees this as a remote prospect.

“Adverse changes to such transfers and litigation risks leading Fitch to revise its expectations of parental support could be negative for the rating.”

The full statement is reproduced below:

Fitch Affirms Standard Chartered Bank Sri Lanka Branch at ‘AAA(lka)’/Stable

Fitch Ratings-Colombo/Singapore-08 February 2013: Fitch Ratings has affirmed Standard Chartered Bank, Sri Lanka Branch’s (SCBSL) National Long-Term rating at ‘AAA(lka)’. The Outlook is Stable.

Rating Action Rationale

The affirmation o