Fitch lifts People's Bank

Fitch Ratings said it upgraded Sri Lanka's People's Bank and its subsidiaries People's Leasing Co. plc and People's Finance plc.

The outlook is stable.

The agency also said it affirmed People's Bank's associate company People's Merchant Finance plc at BB+(lka) with stable outlook.

The upgrades reflect an reassessment of government support to People's Bank in light of its growing importance as Sri Lanka's second-largest bank, Fitch said.

This is underpinned by the agency's expectations that the bank's role in the post-war development economy will likely further strengthen its linkage with the Sri Lanka government, the agency said.

The ratings also consider an expectation of timely support from the government of Sri Lanka if required, given its government ownership, importance to the government and high systemic importance, Fitch added.

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