Oct 06, 2008 (LBO) – Fitch Ratings Lanka has confirmed Sri Lanka’s People’s Bank (PB) national long-term ‘A-(lka)’ rating with a ‘positive’ outlook and the bank’s other ratings at Support ‘4’ and Individual ‘E’.
The Long-term and Support ratings reflect the expected level of support available to the bank from the government of Sri Lanka due to its state ownership, systemic significance as the second largest bank in Sri Lanka, and strategic importance to the state, Fitch said.
Fitch said the Individual rating reflects the weak capital position of the bank, which is inadequate to meet regulatory capital adequacy ratios (CARs).
The Positive Outlook reflects Fitch’s expectation that the bank will receive capital infusions from the finance ministry by end-2008.
Fitch said it also reflects the rating agency’s expectation the bank would implement other measures to meet the regulatory minimum core CAR of five percent and total CAR of 10 percent at the bank level by the end of the 2008 financial year.
“Failure to do so would result in a revision of t