Fitch Affirms Standard Chartered Sri Lanka Branch at ‘AAA(lka)’

Fitch Ratings Lanka has affirmed Standard Chartered Bank, Sri Lanka Branch’s (SCBSL) National Long-Term rating at ‘AAA(lka)’. The Outlook is Stable.

SCBSL’s rating is at the highest end of the National Rating scale and reflects the financial strength of its head office, Standard Chartered Bank PLC (SCB). The rating is tied to SCB’s Issuer Default Rating (IDR) of ‘AA-’/Negative, given SCBSL’s legal status as a branch of SCB and that SCBSL is part of the legal entity that is SCB. SCB’s IDR is higher than Sri Lanka’s Long-Term Foreign Currency IDR of ‘BB-’/Stable.

Fitch believes that timely support would be available from SCB, if required. However, such support would be subject to any regulatory restrictions or delays in remitting money into Sri Lanka, none of which is envisaged at the moment.

The affirmation of SCBSL’s rating follows the Outlook revision on SCB’s IDR to Negative from Stable on 5 March 2012, and the simultaneous affirmation of its IDR at ‘AA-’ (see the rating action commentary on www.fitchratings.com).

Operating in Sri Lanka since 1892, SCBSL is Sri Lanka’s second-largest foreign bank branch and has a network of 10 branches.

For the latest research on SCBSL and SCB see www.fitchratings.com or www.fitchratings.lk.