Fitch Ratings has affirmed HSBC Sri Lanka's National Long-term rating at 'AAA(lka)' reflecting the financial strength of HSBC Ltd, Hong Kong’s largest banking group.
In a press release this week, Fitch stated that the outlook remains stable although HSBC Sri Lanka’s loan book contracted by 7% in H109 after expanding 19.7% in the year 2008, the majority of that increase coming from the corporate customer segment. Fitch stated that HSBC Sri Lanka’s asset quality remains relatively strong in a local context but has come under pressure in the face of the unfavourable macroeconomic environment. Consequently, the gross non performing loan (NPL) ratio increased to 3.9% at H109 from 2.8% in 2008. Fitch said this was mainly on account of higher delinquencies across the consumer/retail customer segment as observed across the banking sector. |
E-mail