Fitch revises ratings on 11 Sri Lankan financial institutions

The National Ratings of the Sri Lankan banks consider their creditworthiness relative to other issuers in the country. The recalibration of the Sri Lankan National Rating scale has resulted in the upward revision of the National Long-Term Ratings of the following Sri Lankan financial institutions:

Banks

Commercial Bank of Ceylon PLC (CB) to 'AA+(lka)' from 'AA(lka)'

Hatton National Bank PLC (HNB) to 'AA+(lka)' from 'AA-(lka)'

Sampath Bank PLC to 'AA-(lka)' from 'A+(lka)'

Seylan Bank PLC to 'A(lka)' from 'A-(lka)'

Cargills Bank Limited to 'A+(lka)' from 'A-(lka)'

Amana Bank PLC to 'BB+(lka)' from 'BB(lka)'

Non-Bank Financial Institutions

Serendib Finance Limited to 'AA-(lka)' from 'A+(lka)' (please see http://www.fitchratings.com/site/pr/10125353)

HNB Finance Limited to 'AA-(lka)' from 'A(lka)'

Siyapatha Finance PLC to 'A(lka)' from 'A-(lka)'

Richard Pieris Finance Limited to 'A-(lka)' from 'BBB+(lka)' (please see http://www.fitchratings.com/site/pr/10125353)

Fintrex Finance Limited to 'B+(lka)' from 'B(lka)'

The National Ratings of Bank of Ceylon (BOC) and People's Bank (Sri Lanka) (PB) have been affirmed at 'AA+(lka)' but the Outlook remains Negative. The Outlook on the National Ratings of Commercial Bank (CB) and Hatton Nationa Bank (HNB) are also Negative.

The Negative Outlooks are aligned with the Negative Outlooks on both the sovereign rating and Sri Lanka's operating environment mid-point. They reflect Fitch Ratings' expectation of sovereign support benefitting BOC's and PB's overall credit profiles while CB's and HNB's ratings are constrained by the sovereign's credit profile.

Meanwhile, The Outlook on Serendib Finance and HNB Finance reflect the Negative Outlook on the ratings of their respective parents, CB and HNB. The Outlook on Sampath Bank, Seylan Bank, Cargills Bank, Amana Bank, Siyapatha Finance, Richard Pieris Finance and Fintrex Finance is Stable.