ICRA Lanka Withdraws Rating of Bank of Ceylon

Instrument Current Rated Amount (LKR Mn)Rating Action
Issuer RatingNA[SL]AA (Negative); Withdrawn
Basel III Compliant Additional Tier I Capital Bond Programme- 202010,000[SL]A+ (hyb) (Negative); Withdrawn
Basel III Compliant Additional Tier I Capital Bond Programme- 20213,350[SL]A+ (hyb) (Negative); Withdrawn
Basel III Compliant, Tier II Subordinated Debenture Programme5,400[SL]AA- (Negative); Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL]AA (pronounced SL Double A) with Negative outlook assigned to Bank of Ceylon (“BOC”/ “the Bank”). ICRA Lanka has also withdrawn the issue rating of Basel III Compliant, Unlisted, Unsecured, Subordinated, Perpetual, Additional Tier I (AT1) Capital Bond Programme of LKR 10,000 Mn rated [SL]A+ (hyb) (Pronounced as S L A plus Hybrid) with Negative outlook, the issue rating of Basel III Compliant, Unlisted, Unsecured, Subordinated, Perpetual, Additional Tier I (AT1) Capital Bond Programme of LKR 3,350 Mn rated [SL]A+ (hyb) (Pronounced as S L A Plus Hybrid) with Negative outlook. The letters ‘hyb’ in parenthesis suffixed to a rating symbol stand for ‘hybrid,’ indicating that the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features, which may translate into higher levels of rating transition and loss severity vis-à-vis conventional debt instruments. ICRA Lanka has also withdrawn the issue rating of Basel III Compliant, Tier II Subordinated Debenture Programme of LKR 5,400 Mn rated [SL]AA- (pronounced as S L Double A minus) with Negative Outlook. The withdrawal is as a result of termination of rating agreement(s) entered into by BOC with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka.

The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).

About the Bank:

BOC is the largest bank in Sri Lanka (On asset base); 100% owned by the Government of Sri Lanka. BOC was incorporated in August 1939 under the Bank of Ceylon Ordinance No. 53 of 1938. At present, BOC operates with over 581 branches including 3 overseas branches in Chennai, Maldives and Seychelles, a limited-service branch in Hulhumale & a fully-owned subsidiary in London, U.K. BOC group has 9 subsidiaries and 4 associate companies that are involved in NBFI operations, property development and leisure.

Rating history for last three years:

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