Standard Rating

Sept 30, 2010 (LBO) – Sri Lanka’s Standard Chartered Bank (SCB) branch has been rated at ‘AAA’ by RAM Ratings Lanka, with the assessment driven mainly by the credit profile of the parent Standard Chartered Bank Plc, the rating agency said. It has also been given a ‘P1’ short term rating on RAM’s rating scale.

It had assets of 436.65 billion dollars by December 2009 a Tier-1 risk-weighted capital adequacy ratio of 11.5 percent and an overall capital adequacy ratio of 16.5 percent.

The assets of the Sri Lanka unit, at 83.76 billion rupees by end-December 2009, were less than 1 percent of group assets.

RAM said the group’s commitment to the branch was seen with an injection of 2.53 billion rupees in 2005 to meet capital requirements, followed by another 107 million US dollars in June 2010 to take-over a non-performing asset.

SCB mainly focuses on multinational and top-tier Sri Lankan corporates, supported by its international network and franchise. RAM said its loan book is rather concentrated, with top 20 loans accounting for 63.95 percent of its loan base as at end 2009.

In 2009 Standard Chartered Bank non performing loans were 32.25 percent with an unpaid oil derivative sold to state-run Ceylon Petrol Corporation.