Fitch Affirms Standard Chartered And HSBC

Fitch Ratings Lanka has affirmed Standard Chartered Bank, Sri Lanka Branch’s (SCBSL) and HSBC Sri Lanka Branch’s (HSBCSL) National Long-Term Rating at ‘AAA(lka)’, the ratings agency said in a statement.
The outlook is stable for both banks, the agency said.
SCBSL’s rating is at the highest of the national rating scale and reflects the credit profile and financial strength of its parent 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 both are part of the same legal entity. SCB’s rating is higher than Sri Lanka’s IDR of ‘BB-’/Stable. The rating reflects the financial strength of parent The Hongkong and Shanghai Banking Corporation Limited (HKSB; ‘AA’/Negative), given that HSBCSL is a branch of HKSB and is part of the same legal entity as HKSB.