Oct 07, 2013 (LBO) – Fitch Ratings said it had confirmed an ‘AA-(lka)’ rating of Sri Lanka’s Sampath Bank (SB) with a stable outlook. “Fitch believes that SB’s asset quality may weaken in 2013, in line with its expectation for the sector, but would continue to compare well against most ‘AA(lka)’ category-rated private bank peers,” the rating agency said.
“SB’s exposure to global gold prices remained high compared with its private bank peers.”
By the second half of 2013 its pawning (gold backed loan) advances were 22 percent of loans following aggressive growth since 2009.
But the loan-to-value ratio has since been reduced increasing the buffer against further declines in gold prices and the bank plans to cut exposure to such loans gradually, Fitch said.
The full statement is reproduced below:-
Fitch Affirms Sri Lanka’s Sampath Bank at ‘AA-(lka)’/Stable
04 Oct 2013 7:20 AM (EDT) Fitch Ratings-Colombo/Singapore-04 October 2013: Fitch Ratings Lanka has affirmed Sampath Bank PLC’s (SB) National Long-Term Rating at ‘AA-(lka)’ with a Stable Outlook. The agency has also affirmed SB’s subordina