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Standard Chartered SL rated AAA(lka) with Stable Outlook  

23 Apr 2021

Standard Chartered Sri Lanka’s National Long-Term Rating has once again been affirmed at “AAA(lka)” by Fitch Ratings Lanka with a Stable Outlook.  According to a statement by Fitch Ratings, the bank’s support-driven credit profile is among the strongest in the country’s rated entities, and as a result, the rating is at the highest end of the National Rating scale for Sri Lanka.  Standard Chartered Sri Lanka’s rating is underpinned by Fitch’s expectation of a high probability of support from the head office of Standard Chartered Bank in the UK. The bank’s financial profile is expected to remain better than local peers in the medium term, reflecting the bank’s healthy underwriting standards and risk controls. Fitch Ratings Lanka also noted that Standard Chartered Sri Lanka’s non-performing loans ratio increased to 2.7% by end-Q320 which was better than the sector average, driven mostly by retail loans, and that its common equity Tier 1 (CET1) ratio of 16.8% at end-Q320 was higher than the sector’s 13%. Fitch believes that the bank’s funding and liquidity profile will remain steady in the medium term, underpinned by a healthy share of customer deposits and the availability of inter-group funding. Standard Chartered Sri Lanka welcomed the AAA(lka) rating by Fitch Ratings Lanka with a Stable Outlook, reaffirming the bank’s standing in the country. “We have been able to leverage on our international network to provide vital facilities for the local market reeling from dual disasters in the form of the Easter Sunday attack followed by the global pandemic,” commented Standard Chartered Sri Lanka Chief Executive Officer Bingumal Thewarathanthri. Standard Chartered Sri Lanka facilitated the financing for several local organisations to enhance their manufacturing capacity of essential personal protective equipment (PPE) for the global fight against Covid-19 as part of the bank’s global $ 1 billion not-for-profit financing commitment for pandemic recovery.  The bank has also provided more than $ 45 million in lending and working capital to companies in Sri Lanka under this programme. In Sri Lanka, the bank manages over 40% of the correspondent banking volume of the country, with a strong MNC (multinational corporation) base and is also a significant player in the country’s infrastructure projects and export-related businesses. Standard Chartered Sri Lanka has also supported many local clients to go global using its unique global footprint in Asia, Africa, and the Middle East. Standard Chartered also recently published its first annual Sustainable Finance Impact Report highlighting the bank’s contribution to tackling climate change, and financing dedicated to achieving the United Nations’ Sustainable Development Goals (SDGs).  Lastly, 91% of Standard Chartered’s total sustainable finance assets are located in emerging markets, and 86% of it is in some of the world’s least developed nations.  Standard Chartered Sri Lanka is one of the oldest international banks in Sri Lanka. The bank is a limited liability company registered under the laws of England and Wales by Royal Charter 1853, having a branch office in Sri Lanka.  


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