Fitch lowers DFCC Bank

Fitch Ratings said it downgraded DFCC Bank's national long-term rating to AA-(lka) from AA(lka) and affirmed its 99.1% subsidiary, DFCC Vardhana Bank's national long-term rating at AA-(lka).

The outlooks on both banks are stable.

The ratings reflect expectations of very low default risk relative to other issuers or obligations in the same country, Fitch said.

The downgrade reflects the weakening composite risk profile of the group in view of the growing significance of DFCC Vardhana Bank, which has a weaker credit profile than DFCC Bank, the agency said.

Because the two banks also are now highly integrated in operations and management, Fitch said their credit profiles cannot be meaningfully disentangled. Therefore, the agency said it equalized the ratings of both banks.

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