SL AAendash long-term rating denotes a very low expectation of credit risk. The rating indicates a very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events, FRL said in a release on Monday.
quote s rating reflects its pre-eminent position as the largest bank in Sri Lanka, its high systemic importance and 100 percent state ownership. The bank enjoys a dominant market share of most commercial banking activities and a leading share of deposits.
The rating also recognises increasing loan loss reserves and relatively better provisioning standards compared to other domestic banks.
rnrnFRL expressed concerns over the adequacy of BOC
quote s provisions for bad and doubtful debt.
rnrnNPLs/Loans were 13.7 percent as at Dec 2001, and is on the higher side of the spectrum. Furthermore NPLs increased by 16 percent during the year (26 percent before write offs), but mostly due to a couple of large state entities.