Mar 27, 2014 (LBO) – Fitch Ratings has confirmed an ‘AAA(lka)’ rating of HSBC’s Sri Lanka branch with a stable outlook. HSBC has seen loans growing 6.1 percent in the nine months to September 2013. Large corporate customers made up 64 percent of its rupee loans. Of the retail loan book, 43 percent was from credit cards.
HSBC had capital of 23.8 percent of risk weighted assets.
The full statement is reproduced below:-
Fitch Affirms HSBC Sri Lanka Branch at ‘AAA(lka)’; Outlook Stable
Fitch Ratings-Colombo-27 March 2014: Fitch Ratings Lanka has affirmed HSBC Sri Lanka Branch’s (HSBCSL) National Long-Term Rating at ‘AAA(lka)’.The Outlook is Stable.
KEY RATING DRIVERS – NATIONAL RATINGS
HSBCSL’s rating is at the highest end of the National Rating scale and reflects the credit profile and financial strength of The Hongkong & Shanghai Banking Corporation Limited (HKSB; Long-Term Issuer Default Rating (IDR): ‘AA’-/Stable).
The rating is tied to HKSB’s IDR because of HSBCSL’s legal status as a branch of HKSB and hence is an extension of the same legal entity as HKSB. HKSB’s rating