Fitch cuts Housing Development Finance to A-(lka)

Fitch Ratings said it downgraded the national long-term rating of The Housing Development Finance Corp. Bank of Sri Lanka to A-(lka) from A(lka), along with its 2005/2010, 2015, 2020 senior unsecured redeemable debentures of LKR250 million and 2005/2009 senior unsecured redeemable debentures of LKR125 million to A-(lka) from A(lka).

The outlook has been revised to negative from stable.

The downgrades reflect deteriorating profitability brought on by the company's inherent interest rate risk, Fitch said, and the escalation of such risk in the current interest rate environment.

The rating also factors in its significant state ownership, comfortable capital position and the manageable and relatively low ultimate credit risk inherent in residential housing finance, the agency said.

The negative outlook reflects the company's deteriorating profitability and weak macroeconomic environment, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.