ECONOMYNEXT – A ‘B’ rating on Sri Lanka’s DFCC Bank will stay after its merger with subsidiary DFCC Vardhana Bank, Standard and Poor’s, a rating agency said.
"Our analysis of DFCC is already based on the consolidated profile of the two entities including their franchise, funding, asset quality, earnings, and capitalization," S&P said in a statement.
"Our ratings on DFCC reflect the bank’s satisfactory business position, better capitalization and earnings than domestic peers’, limited deposit base and branch network, and exposure to sensitive loan segments."
DFCC owns 99.71 percent of the subsidiary.
S&P said the merger will bring limited cost benefits because the two entities already have operational synergies. Group assets were 211 billion rupees at March 31, 2015. (Colombo/July29/2015)