Fitch upgrades DFCC Bank’s rating outlook from ‘Negative’ to ‘Stable’

Fitch Ratings have revised DFCC’s outlook for both its International and National Long Term Ratings to ‘Stable’ from ‘Negative’ while affirming the ratings at B+ and AA- respectively.

The rating agency said that this outlook revision reflects their view that adverse effects on the bank’s credit profile from increasing risks in the domestic operating environment previously expected have reduced.

DFCC’s Viability Rating and the National Long-Term Rating capture its developing commercial banking franchise and still-high capitalisation levels relative to the peers.

DFCC’s Sri Lanka Rupee-denominated senior debt is rated at the same level as its National Long-Term Rating, as the debentures rank equally with other senior unsecured obligations.

The bank’s subordinated debt rating will move in tandem with the bank’s National Long-Term Rating.

Commenting on the latest rating review, DFCC Bank CEO Lakshman Silva said: “This upgrade in DFCC’s rating outlook by Fitch closely follows a similar upgrade by S&P Global Ratings which clearly indicates that the rating agencies have recognised DFCC’s effort to keep the fundamentals strong. The positivity reflected by the upgrade of our outlook by both rating agencies gives us confidence to drive the bank to create more value for its stakeholders and press on with our plans for long term growth and stability.”