July 01, 2009 (LBO) – Sri Lanka’s Fitch Ratings said it has confirmed the ‘AA-(lka)’ national long-term rating of Sampath Bank, as well as its individual and support ratings at ‘D/E’ and ‘5’, with a stable outlook. Furthermore, the bank’s credit decisions became more centralised since early-2009, and its recoveries were strengthened by reallocating experienced credit personnel.
The banks group asset base stood at 142.3 billion rupees 2008 and accounted for 6.25 percent of total licensed commercial banking (LCB) sector assets, which it controls via 124 branches.
The bank is considered as one of six systemically important LCBs by the Central Bank of Sri Lanka.
It said in a statement that the national long-term rating on the bank’s outstanding rated subordinated debentures of 1.75 billion rupees was also confirmed at ‘A+(lka)’.
Fitch said it also assigned an ‘A+(lka)’ national long-term rating to the bank’s proposed subordinated debenture issue of up to three billion rupees.
The confirmations reflect Sampath Bank’s sound liquidity and capital adequacy, and good franchise among local commercial banks, Fitch said.
Fitch expects the bank to broadly manage the current sector-wide deterio