Recognition of Lanka Rating Agency Ltd as an Acceptable Credit Rating Agency

MONETARY BOARD
CENTRAL BANK OF SRI LANKA

08 September 2021 | CIRCULAR | No. 09 of 2021

RECOGNITION OF LANKA RATING AGENCY LTD AS AN ACCEPTABLE CREDIT RATING AGENCY

The Central Bank of Sri Lanka recognises Lanka Rating Agency Ltd (LRA) as an acceptable External Credit Assessment Institution for the purpose of Banking Act Directions No. 01 of 2016 on Capital Requirements Under Basel III for Licensed Commercial Banks and Licensed Specialised Banks and other related regulatory requirements pertaining to licensed commercial banks and licensed specialised banks.

Accordingly, Table 1 and Table 3 under the item No. 2.3 of Schedule I Appendix IV of the Banking Act Directions No. 01 of 2016 on Capital Requirements Under Basel III for Licensed Commercial Banks and Licensed Specialised Banks are revised as in Annex.

(Signature)

Prof. W D Lakshman
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka

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Table 1 - Mapping of Notations of the Credit Rating Agencies in Sri Lanka

Fitch Rating Lanka	ICRA Lanka Limited	Lanka Rating Agency Limited	Rating Scale for Capital Ratios
AAA (lka)	(SL) AAA	AAA	AAA
AA+ (lka)	(SL) AA+	AA+	AA+
AA (lka)	(SL) AA	AA	AA
AA- (lka)	(SL) AA-	AA-	AA-
A+ (lka)	(SL) A+	A+	A+
A (lka)	(SL) A	A	A
A- (lka)	(SL) A-	A-	A-
BBB+ (lka)	(SL) BBB+	BBB+	BBB+
BBB (lka)	(SL) BBB	BBB	BBB
BBB- (lka)	(SL) BBB-	BBB-	BBB-
BB+ (lka)	(SL) BB+	BB+	BB+
BB (lka)	(SL) BB	BB	BB
BB- (lka)	(SL) BB-	BB-	BB-
B+ (lka)	(SL) B+	B+	B+
B (lka)	(SL) B	B	B
B-(lka) & Lower	(SL) B- & Lower	B- & Lower	B- & Lower

Table 3 - Mapping of Short-Term Ratings

Standard and Poor's	Moody's	Fitch Ratings	ICRA Lanka Limited	Lanka Rating Agency Limited	Risk weights
A - 1+/A - 1	P - 1	F1+/ F1	(SL) A1+ / A1	A1+/A1	20%
A - 2+/A - 2	P - 2	F2	(SL) A2+ / A2	A2	50%
A - 3+/A - 3	P - 3	F3	(SL) A3+ / A3	A3	100%
Below A - 3	NP	Below F3	(SL) Below A3	A4	150%

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