Fitch affirms Housing Development Finance

Fitch Ratings said it affirmed Housing Development Finance Corp. Bank of Sri Lanka's national long-term rating at BBB+(lka) and its outstanding senior debentures of LKR250 million at BBB+(lka).

The outlook is revised to stable from negative.

The outlook revision reflects efforts to increase interest rates on its existing loan book in order to mitigate its inherent interest rate risk, Fitch said.

The rating also factors in its 51% state ownership, its perceived importance to the country's housing, its considerable borrowings from state-related entities, low ultimate credit risk of its housing loan portfolio and lower systemic importance compared to larger commercial banks, the agency said.

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