Fitch rates Seylan at 'BBB+(lka)'

Fitch Ratings has assigned a 'BBB+(lka)' National Long-term rating to Sri Lanka's Seylan Bank PLC's (Seylan) proposed senior unsecured redeemable debentures of up to Rs 2 billion.

The agency has simultaneously affirmed Seylan's National Long-term rating at 'BBB+(lka)'. The outlook is stable.

Fitch has also affirmed the bank's Rs 3.4 billion outstanding subordinated debentures at 'BBB(lka)'.

Seylan's ratings continue to reflect implied state support, given the bank's size and systemic importance.

Fitch also notes the active restructuring measures being implemented within the bank, by the new board of directors.

While the agency notes that Seylan's stand-alone credit profile is on an improving trend, it is still weak, largely due to its asset quality - mainly a function of weak governance and credit controls in the past.