Fitch lowers Sampath Bank view to stable

Fitch Ratings said it revised Sampath Bank plc's outlook to stable from positive.

The agency said it affirmed its national long-term rating at AA-(lka) and its subordinated debentures at A+(lka).

The outlook revision reflects the weaker-than-expected buildup of the bank's core capitalization relative to higher rated peers and the need to achieve a sustainable improvement in the bank's core profitability by improving its funding structure and operating scale, Fitch said.

The ratings consider the bank's strong asset quality supported by structural improvements initiated in 2009, its high loan loss reserves in a local context and its growing franchise in terms of its market share of banking sector assets, loans and deposits, the agency said.

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