Moody's affirms HNB's international credit rating on par with the sovereign
Hatton National Bank PLC, the first local private sector commercial bank to obtain an international credit rating was once again affirmed with a foreign currency issuer rating of B1 on par with the sovereign rating of Sri Lanka assigned by Moody's Investors Service Inc..
Click to download Moody's Ratings - 23 May 2019
Fitch Affirms Hatton National Bank at 'AA-(lka)'; Outlook Stable Fitch Ratings Report - January 2019
Fitch maintains a negative outlook on the Sri Lankan banking sector as we expect operating conditions to remain difficult amid a challenging economic environment, which will continue to put pressure on bank performance. Sri Lanka’s sovereign rating was downgraded to ‘B’ from ‘B+’ in December 2018. The Outlook is Stable.
Fitch views the upside potential of HNB's ratings as limited given its higher risk appetite, which has led to weaker through-the-cycle asset quality compared with peers'. A material increase in risk taking, unless sufficiently mitigated through capital and financial performance, could result in a rating downgrade.
The ratings of senior and subordinated debt are primarily sensitive to changes in HNB's National Long-Term Rating.
Jeewanthi Malagala, CFA
Rukshana Thalgodapitiya, CFA