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Capital Cushion

Feb 20, 2012 (LBO) - RAM Ratings Lanka has assigned long- and short-term financial institution ratings of BBB and P2 to Sri Lanka Savings Bank with the long-term rating having a stable outlook. The ratings are upheld by the bank’s state ownership and the ongoing support from the government and reflect SLSB’s strong capital cushioning and liquidity levels as well as its good asset quality, a statement said.

But the ratings are moderated by the bank’s small stature, RAM Ratings Lanka said.

The full rating report follows:

RAM Ratings Lanka has assigned respective long- and short-term financial institution ratings of BBB and P2 to Sri Lanka Savings Bank (SLSB or the Bank); the long-term rating has a stable outlook. The ratings are upheld by the Bank’s state ownership and the ongoing support derived from the Government of Sri Lanka (GOSL). The ratings also reflect SLSB’s strong capital cushioning and liquidity levels as well as its good asset quality.

On the other hand, the ratings are moderated by the Bank’s small stature. Incorporated in 2006, SLSB is a state-owned licensed specialised bank (LSB). It had been established with the primary objec

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