Sound Profile

Nov 01, 2011 (LBO) – Fitch Ratings Lanka has confirmed Hatton National Bank’s (HNB) National Long-Term rating at ‘AA-(lka)’ with a stable outlook. The agency has also confirmed HNB’s subordinated debentures at ‘A+(lka)’, a statement said.

“The ratings reflect HNB’s sound financial profile, supported by robust capitalization, asset quality and profitability among local commercial banks,” it said.

“The ratings are, however, are constrained by HNB’s loan concentrations to related parties, geographic concentrations in Maldives, and increasing loan/deposit ratios.”

Fitch warned that a sustained deterioration in HNB’s capitalisation and asset quality relative to ‘AA(lka)’ peers would put downward pressure on the ratings.

The full ratings report follows:

Fitch Ratings Lanka has affirmed Hatton National Bank PLC’s (HNB) National Long-Term rating at ‘AA-(lka)’. The Outlook is Stable. The agency has also affirmed HNB’s subordinated debentures at ‘A+(lka)’.

The ratings reflect HNB’s sound financial profile, supported by robust capitalization, asset quality and profitability among local commercial banks. The ratings are, howe