Fitch Upgrades Financial Institutions

Fitch Ratings has upgraded the National Long-Term Ratings of three major bank-owned non-bank financial institutions (NBFIs). The institutions include People’s Leasing and Finance PLC (PLC), Merchant Bank of Sri Lanka & Finance PLC (MBSL), and CBC Finance PLC (CBCF).

The rating actions directly follow parent-bank credit upgrades issued by the rating agency. The new ratings rank PLC and MBSL at ‘AA-(lka)’ and CBCF at ‘A+(lka)’.

Fitch indicated that the parent banks maintain a very high propensity and capacity to extend extraordinary support. This is reinforced by significant equity ownership stakes and shared branding.

The upgrades improve risk differentiation within the local investment climate. It provides a much-needed boost to retail financial sector stability as the wider economy goes through structural adjustments.

 

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