Dec 11, 2012 (LBO) – Fitch Ratings has confirmed a ‘AAA(lka)’ rating of HSBC Sri Lanka with a stable outlook, on the strength of its parent. The full statement is reproduced below:
Fitch Affirms HSBC Sri Lanka Branch at ‘AAA(lka)’; Outlook Stable
Fitch Ratings-Colombo/Seoul/Singapore-10 December 2012: Fitch Ratings Lanka has affirmed HSBC Sri Lanka Branch’s (HSBCSL) National Long-Term Rating at ‘AAA(lka)’.The Outlook is Stable.
The rating reflects the financial strength of parent The Hongkong and Shanghai Banking Corporation Limited (HKSB; ‘AA-‘/Stable), given that HSBCSL is a branch of HKSB and part of the same legal entity as HKSB. Thus, Fitch believes that support from HKSB would be forthcoming if required, subject to any regulatory constraints on remitting money into Sri Lanka. HKSB is rated above Sri Lanka’s Issuer Default Rating (IDR) of ‘BB-‘ which has a Stable Outlook.
HSBCSL’s National Long-Term Rating is at the highest end of the National Rating scale. A downgrade of HSBCSL’s rating could result from HKSB’s rating being downgraded below Sri Lanka’s IDR. Any changes to Fitch’s expectation of support from H