DFCC Bank Rated AA- with Stable Outlook by ICRA Lanka Limited
December, 17, 2020
DFCC Bank, Sri Lanka’s premier commercial bank, was recently assigned an issuer rating of “[SL] AA- with Stable outlook” by ICRA Lanka Limited. ICRA Lanka Limited (ICRA Lanka) is a Credit Rating Agency licensed by the Securities and Exchange Commission of Sri Lanka (SEC), and is a fully owned subsidiary of ICRA Limited, India. The ultimate parent company of the international credit rating agency, Moody s Investors Service, is the indirect majority shareholder of ICRA.
ICRA Lanka’s rating factors in DFCC Bank’s established track record as the pioneer development bank in Sri Lanka (the Bank consequently became a fully-fledged commercial bank in 2015), healthy asset quality indicators, and the adequate capitalization profile. The Bank has a strong corporate banking focus, with about 44% of the total portfolio comprising corporate lending as at June 2020. The rating also takes cognizance of the
DFCC Bank was recently assigned an issuer rating of “[SL] AA- with Stable Outlook” by ICRA Lanka Limited. ICRA Lanka Limited (ICRA Lanka) is a Credit Rating Agency licensed by the Securities and Exchange Commission of Sri Lanka (SEC), and is a fully owned subsidiary of ICRA Limited, India. The ultimate parent company of the international credit rating agency, Moody’s Investors Service, is the indirect majority shareholder of ICRA.
ICRA Lanka’s rating factors in DFCC Bank’s established track record as the pioneer development bank in Sri Lanka (the bank consequently became a fully-fledged commercial bank in 2015), healthy asset quality indicators, and the adequate capitalization profile. The bank has a strong corporate banking focus, with about 44% of the total portfolio comprising corporate lending as at June 2020. The rating also takes cognizance of the healthy asset quality indicators of the bank, with gross NPA (GNPA) of 4.8% as at June 2020, which was lower than the sys