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Stable Outlook

June 26, 2012 (LBO) – Fitch Ratings Sri Lanka revised Sinhaputhra Finance PLC's outlook upwards to ˜stable’ from ˜negative’ on improvements in its credit risk management practices. The outlook revision and affirmation reflects¦ subsequent stabilisation and enhancement in its asset quality, although the latter still remains weaker than its peers' average, the risk evaluator said in a statement on Tuesday.

The affirmation also reflects Sinhaputhra’s weak net non-performing loans (NPLs)/equity ratio and low profitability relative to peers in its rating category. Full statement:

Fitch Ratings Lanka has revised Sinhaputhra Finance PLC's (SFL) Outlook to Stable from Negative. Its National Long-Term rating has been affirmed at 'B(lka)'. The Outlook revision and affirmation reflect improvements in SFL's credit risk management practices and the subsequent stabilisation and enhancement in its asset quality, although the latter still remains weaker than its peers' average.

The affirmation also reflects SFL's weak net non-performing loans (NPLs)/equity ratio and low profitability relative to peers in its rating category.

The rating may be downgraded if SFL fa

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