Fitch downgrades BOC’s Foreign Currency IDRs to RD

Fitc h Ratings has downgraded Bank of Ceylon’s (BOC) Long- and Short-Term Foreign Currency (FC) Issuer Default Ratings (IDRs) to ‘RD’ (Restricted Default) from ‘CC’ and ‘C’, respectively.

Fitch has also downgraded the Viability Rating ( VR) to ‘f’ from ‘cc’, and removed the ratings from Rating Watch Negative (RWN). The rating actions are in accordance with Fitch’s rating definitions.

At the same time, Fitch has maintained BOC’s Long-Term Local-Currency (LT LC) IDR of ‘CCC’ on RWN as well as its National Long Term Rating of ‘AA-(lka)’.

Fitch Ratings has been made aware of missed payments on BOC’s foreign-currency obligations which underpins our rating action on its LT FC IDR, ST FC IDR and VR.

“We believe the foreign-currency funding and liquidity profile is highly stretched, and also believe this is exacerbated by the sovereign’s debilitated credit profile (Long-Term ForeignCurrency IDR of ‘RD’ and Long-Term LocalCurrency IDR of ‘CCC’),” Fitch said.