RAM Ratings reaffirms AA-/P1 ratings of MBSL

RAM Ratings has reaffirmed Merchant Bank of Sri Lanka's (MBSL) long-and short-term financial institution ratings at AA- and P1, the long-term rating has a stable outlook.

The ratings are supported by the credit strength and financial flexibility which stem from its parent - the state-owned Bank of Ceylon (BoC), the largest commercial bank in Sri Lanka. At the same time, both its Rs.300 million Unlisted Private Debentures and Rs.14.60 million Unlisted Public Debentures have also been reaffirmed at AA-, with stable outlooks.

MBSL is a 76%-owned subsidiary of BoC, the largest commercial bank in terms of total assets[0]. BoC is a sovereign-owned entity that has consistently demonstrated its commitment to MBSL via long- and short-term loans.