RAM Ratings Lanka reaffirms Union Bank of Colombo PLC’s ratings at BBB/P3
View(s):RAM Ratings Lanka has reaffirmed the respective long- and short-term financial institution ratings of Union Bank of Colombo PLC (Union Bank or the Bank) at BBB and P3.
The long-term rating carries a stable outlook. “Meanwhile, the ratings are supported by the group’s average capitalisation but tempered by its small stature, below average asset quality and performance,” RAM said in a media release.
Union Bank is one of the smallest licensed commercial banks (LCB) in Sri Lanka, accounting for less than 1 per cent LCB industry assets as at end-September 2013. The bank acquired The Finance and Guarantee Company Ltd subsequently renamed UB Finance Company Ltd (UB Finance) for Rs. 600 million in November 2011.