RAM said the ratings are backed by majority state ownership of HDFC.
The full statement is reproduced below:-
RAM Ratings Lanka assigns BBB to HDFC’s proposed LKR 2 billion listed, secured, redeemable debenture; reaffirms entity ratings
RAM Ratings Lanka has reaffirmed the respective long- and short-term financial institution ratings of BBB and P3 to the Housing Development Finance Corporation Bank (HDFC or the Bank); the long-term rating carries a stable outlook.
Concurrently long-term issue ratings of BBB have been assigned to the proposed LKR 2 billion listed, secured, redeemable debenture (2013/2018). The ratings are upheld by the majority state ownership and the ongoing support derived from the government of Sri Lanka (GOSL) as well as its good capital cushioning. On the other hand, the ratings are tempered by HDFC’s below-average asset quality and performance as well as its small stature.