RAM reaffirms Commercial Bank ratings
View(s):RAM Ratings Lanka has reaffirmed Commercial Bank of Ceylon (COMB)’s long- and short-term financial institution ratings at AA+ and P1, respectively; the long-term rating has a stable outlook. The ratings are based on the group’s strong market position as Sri Lanka’s largest privately owned licensed commercial bank (LCB) and third-largest overall LCB, according to a RAM statement.
The ratings also reflect COMB’s strong franchise and healthy financial performance, funding and liquidity, as well as good capitalization levels. Incorporated in 1969, COMB accounted for 12.34% of the LCB industry’s asset base as at end-December 2011. It ranked behind two state-owned banks, which took up 41.92% of the industry’s total assets. Given its size, COMB is also deemed one of the country’s five systematically important financial institutions by the Central Bank of Sri Lanka.
Since the government has an 18.82% direct stake in COMB, there is a likelihood of state support if needed, RAM said.
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