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Regional Rating

July 25, 2012 (LBO) - Fitch Ratings has confirmed a 'BBB+(lka)' rating of Sri Lanka's state-run Regional Rural Development Banks with a stable outlook. "RDB's rating derives support from its 100 percent state ownership," the rating agency said.

"The Stable Outlook reflects Fitch's expectations of continued moderate state support in the event of stress.

"The rating is, however, constrained by the bank's relatively small asset base by local standards and, therefore, relatively less systematic importance compared with other large state-owned banks."

The full statement is reproduced below:

Fitch Affirms Regional Development Bank at 'BBB+(lka)'/Stable

Fitch Ratings-Colombo/Mumbai/Singapore-23 July 2012: Fitch Ratings Lanka has affirmed Regional Development Bank's (RDB) National Long-Term rating at 'BBB+(lka)'. The Outlook is Stable.

RDB's rating derives support from its 100% state ownership. The Stable Outlook reflects Fitch's expectations of continued moderate state support in the event of stress. The rating is, however, constrained by the bank's relatively small asset base by local standards and, therefore, rel

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