Supported Rating

Sept 20, 2012 (LBO) - An 'A-(lka)' rating of Sri Lanka's Seylan Bank, the island's sixth largest bank has been confirmed by Fitch Ratings with a stable outlook on expectations of state support.

"Seylan's rating reflects Fitch's expectations of support from the State of Sri Lanka if required, given the bank's systemic importance," the rating agency said.

"However, the state's ability to support is limited by the government's limited financial ability as evident in its 'BB-'/Stable' rating.

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The full statement is reproduced below:

Fitch Affirms Seylan Bank at 'A-(lka)'/Stable

Fitch Ratings-Colombo/Seoul/Singapore-19 September 2012: Fitch Ratings Lanka has affirmed Seylan Bank PLC's (Seylan) National Long-Term rating at 'A-(lka)'. The Outlook is Stable. A full list of the bank's ratings is provided at the end of this commentary.

Seylan's rating reflects Fitch's expectations of support from the State of Sri Lanka if required, given the bank's systemic importance.

However, the state's ability to support is limited by the government's limited financial ability as evident in its 'BB-'/Stable' rating.

Seylan is one of six systemically important domestic ba