ICRA Lanka Withdraws Rating of Bank of Ceylon
|Instrument||Current Rated Amount (LKR Mn)||Rating Action|
|Issuer Rating||NA||[SL]AA (Negative); Withdrawn|
|Basel III Compliant Additional Tier I Capital Bond Programme- 2020||10,000||[SL]A+ (hyb) (Negative); Withdrawn|
|Basel III Compliant Additional Tier I Capital Bond Programme- 2021||3,350||[SL]A+ (hyb) (Negative); Withdrawn|
|Basel III Compliant, Tier II Subordinated Debenture Programme||5,400||[SL]AA- (Negative); Withdrawn|
ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL]AA (pronounced SL Double A) with Negative outlook assigned to Bank of Ceylon (“BOC”/ “the Bank”). ICRA Lanka has also withdrawn the issue rating of Basel III Compliant, Unlisted, Unsecured, Subordinated, Perpetual, Additional Tier I (AT1) Capital Bond Programme of LKR 10,000 Mn rated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 ICRA Lanka has also withdrawn the issue rating of Basel III Compliant, Tier II Subordinated Debenture Programme of LKR 5,400 Mn rated [SL]AA- (pronounced as S L Double A minus) with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:
Subsidiary of ICRA Limited
CORPORATE OFFICELevel10, East Tower, World Trade Center, Colombo 01, Sri Lanka Tel:+94 11 4339907;Fax:+94112333307 Email:firstname.lastname@example.org; Website:www.icralanka.com
© Copyright, 2022 ICRA Lanka Limited. All Rights Reserved. Contents may be used freely with due acknowledgement to ICRA Lanka.
ICRA Lanka ratings should not be treated as recommendations to buy, sell or hold the rated debt instruments. ICRA Lanka ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA Lanka rating is a symbolic indicator of ICRA Lanka’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icralanka.com or contact ICRA Lanka’s office for the latest information on the outstanding ICRA Lanka ratings.
All information contained herein has been obtained by ICRA Lanka from sources believed by it to be accurate and reliable, including the rated issuer. ICRA Lanka however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA Lanka in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information.
ICRA Lanka does not take any responsibility for accuracy of material/documents prepared or published by other parties based on this document. All ICRA Lanka official rating rationales are prepared in English and external parties may present or publish translated versions of the same. Readers are henceforth advised to refer to the ICRA Lanka’s official rating rationale in the event of any inconsistency found in such documents.
ICRA Lanka or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA Lanka shall not be liable for any losses incurred by users from any use of this publication or its contents.