Credit Rating

Fitch Affirms Hatton National Bank at 'AA-(lka)'; Outlook Stable

Fitch Ratings Report - October 2015

Fitch Ratings-Colombo/Hong Kong-October 2015: Fitch Ratings has affirmed Sri Lanka-based Hatton National Bank PLC's (HNB) National Long-Term Rating at 'AA-(lka)'. The Outlook is Stable. The agency also affirmed HNB's outstanding senior unsecured debentures at 'AA-(lka)' and subordinated redeemable debentures at 'A+(lka)'.

Rating sensitivities- national long-term rating and senior debt
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.

Primary Analyst
Prasanka Rajapaksha, CFA
Assistant Vice President
+941 1254 1900
Fitch Ratings Lanka Ltd
15-04, East Tower, World Trade Centre
Colombo 1, Sri Lanka

Secondary Analyst
Rukshana Thalgodapitiya, CFA
Vice President
+941 1254 1900

Committee Chairperson
Sabine Bauer
Senior Director
+852 2263 9966