{"id":131358,"date":"2023-01-13T16:25:34","date_gmt":"2023-01-13T23:25:34","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=131358"},"modified":"2023-01-13T16:25:34","modified_gmt":"2023-01-13T23:25:34","slug":"fitch-downgrades-long-term-ratings-of-10-sri-lankan-banks","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2023\/01\/13\/fitch-downgrades-long-term-ratings-of-10-sri-lankan-banks\/","title":{"rendered":"Fitch downgrades long-term ratings of 10 Sri Lankan banks"},"content":{"rendered":"

Courtesy Adaderana<\/em><\/span><\/h2>\n\n\n

Fitch Ratings has downgraded the National Long-Term Ratings of 10 Sri Lankan banks following the recent sovereign downgrade and recalibration of the agency\u2019s Sri Lankan national rating scale.<\/p>\n\n\n\n

The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch\u2019s downgrade of Sri Lanka\u2019s Long-Term Local Currency Issuer Default Rating (IDR) to \u2018CC\u2019 from \u2018CCC\u2019\/Under Criteria Observation on 1 December 2022.<\/p>\n\n\n\n

The rating agency said it typically does not assign Outlooks or apply modifiers to sovereigns with a rating of \u2018CCC+\u2019 or below.<\/p>\n\n\n\n

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka\u2019s national scale ratings are denoted by the unique identifier \u2018(lka)\u2019.<\/p>\n\n\n\n

Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale.<\/p>\n\n\n\n

National scales are not comparable with Fitch\u2019s international rating scales or with other countries\u2019 national rating scales.<\/p>\n\n\n\n

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 downgrades of the National Long-Term Ratings of the following banks:<\/p>\n\n\n\n

– Bank of Ceylon
– People\u2019s Bank
– Commercial Bank of Ceylon PLC
– Hatton National Bank PLC
– Sampath Bank PLC
– Cargills Bank Limited
– DFCC Bank PLC
– National Development Bank PLC
– Seylan Bank PLC
– Nations Trust Bank PLC<\/p>\n\n\n\n

Meanwhile, other Sri Lankan banks\u2019 national ratings, which are not mentioned in this commentary, have not been affected by the recalibration exercise.<\/p>\n","protected":false},"excerpt":{"rendered":"

Courtesy Adaderana Fitch Ratings has downgraded the National Long-Term Ratings of 10 Sri Lankan banks following the recent sovereign downgrade and recalibration of the agency\u2019s Sri Lankan national rating scale. The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch\u2019s downgrade of Sri Lanka\u2019s Long-Term Local Currency Issuer Default […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-131358","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/131358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=131358"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/131358\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=131358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=131358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=131358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}