Fitch upgrades SLIC's national long-term rating

Fitch has upgraded SLIC's National Long-term rating, and not the National Issuer Default Rating. The corrected version is as follows.

Fitch Ratings has upgraded Sri Lanka Insurance Corp Ltd's (SLIC) National Long-term rating to 'AA-(lka)' from 'A+(lka)'. Concurrently, Fitch has affirmed SLIC's National Insurer Financial Strength (IFS) rating at 'AA-(lka)'. The Outlook is Stable. The upgrade of SLIC's National Long-term rating reflects the company's recent nationalisation, which, in Fitch's view, indicates potential for government support, should this be required.

On June 4, 2009, the Supreme Court ordered that SLIC's privatisation in 2003 be annulled on the grounds that the transaction was not properly structured and executed.

SLIC is now under Government control and its board of directors has been replaced. "SLIC's systematic importance to the Sri Lankan economy is underpinned by its position as the largest insurer in the market by total assets," said Director in Fitch's insurance team Stnaley Tsai.