Fitch said the ratings factor in PLC's good access to local institutional funding, and the benefits derived from its parent, the state-owned People's Bank (PB, 'A-(lka)' (A minus(lka))/Positive Outlook).
PLC accounted for over 23 percent of People Bank's group profits at end-December 2007.
"PLC's aggressive loan growth under the present challenging economic conditions is a rating concern," Fitch Ratings Lanka said in a statement.
It said that PLC's pre-provision return on assets (ROA) at an annualised 8.48 percent at the end of the first quarter of the 2009 financial year has consistently compared well against its peers.
This was due to its healthy net interest margin (NIM) driven by high interest yields, and a more cost-efficient operation.
Peo