"The ratings reflect HDFC's demonstrated ability to contain interest rate risk by re-pricing its existing loans, despite a sizeable interest-rate mismatch between its assets and liabilities," a statement said.
The full rating report follows:
Fitch Ratings has affirmed the Housing Development Finance Corporation Bank of Sri Lanka's (HDFC) National Long-Term rating at 'BBB+(lka)'. The Outlook is Stable. At the same time, the agency has affirmed the bank's outstanding senior unsecured redeemable debentures at 'BBB+(lka)'.
The ratings reflect HDFC's demonstrated ability to contain interest rate risk by re-pricing its existing loans, despite a sizeable interest-rate mismatch between its assets and liabilities.
The ratings may be downgraded if there is continued deterioration in HDFC's maturity or interest-rate mismatches, or a continued erosion of capitalisation. A