Verified

Fitch upgrades BOC’s national rating by two notches to ‘AA (lka)’

Fitch Ratings upgraded the National Long-Term Rating of Bank of Ceylon (BOC), Sri Lanka’s largest banking institution, by two notches to ‘AA+(lka)’ from ‘AA-(lka)’ with a Stable Outlook. This move recognises the bank’s financial resilience and strong presence in the domestic banking sector, according to BOC.

The upgrade follows Fitch’s revision of Sri Lanka’s Long-Term Local-Currency Issuer Default Rating to ‘B-’ from ‘CCC+’, with a Stable Outlook, on September 22, together with the subsequent recalibration of the country’s national rating scale. The improved assessment reflects the changing credit environment and provides greater recognition of BOC’s relative credit strength among domestic financial institutions.

Fitch has identified BOC’s leading position in the domestic banking sector, extensive branch network, broad customer base and strong deposit position as key factors supporting the upgrade.

Furthermore, the improvement in Sri Lanka’s sovereign credit environment and the upgrade of BOC’s operating environment assessment to ‘b-’ from ‘ccc+’ are expected to ease macroeconomic pressures and support the bank’s overall credit profile.

Commenting on the upgrade, BOC Chairman Kavinda de Zoysa described it as “an important recognition of the bank’s financial strength, resilience and leadership in Sri Lanka’s banking sector.”

“This achievement reinforces our commitment to a clear strategic direction, sound risk management, prudent financial stewardship and a continued focus on strengthening our capital position. These priorities remain central to building a stronger, more resilient and sustainable institution. As the ‘Bankers to the Nation’, we remain committed to supporting Sri Lanka’s economic progress, empowering businesses and creating long-term value for our customers, stakeholders and the nation,” he added.

General Manager/Chief Executive Officer Y.A. Jayathilaka noted that the upgrade marks another important milestone for the bank, recognising the strength of the institution and its position within Sri Lanka’s financial sector.

“Fitch’s assessment highlights the value of our strong market presence, extensive customer network and robust deposit base. Building on these strengths, we will continue to enhance our operational capabilities, strengthen our financial performance and pursue sustainable growth opportunities. Our priority remains delivering greater value to all stakeholders while supporting businesses and contributing to the continued development of the Sri Lankan economy,” he stated.

With a legacy spanning more than eight decades since its establishment in 1939, BOC continues to support savings, investment and financing across retail, SME, corporate and other key sectors through its extensive branch network and strong deposit base.