Fitch Ratings Lanka has affirmed Citibank N.A. - Colombo Branch’s (CitiSL) National Long-Term Rating at ‘AAA(lka)’. The outlook is stable.
CitiSL’s rating is at the highest end on the National Rating scale and reflects the credit profile and financial strength of its head office - Citibank, N.A. (A+/Stable/ a).
It also reflects Fitch’s expectation of continued strong support from the head office as CitiSL is a branch of Citibank, N.A. and forms part of the same legal entity.
The relatively small size of the branch (less than 1% of the total assets of Citibank, N.A.) implies that support, if any, would not be material to the head office. Citibank, N.A.’s Issuer Default Rating (IDR) is higher than Sri Lanka’s Long-Term Local- and Foreign-Currency IDRs of ‘B+’/Stable and as a result CitiSL’s rating on the National Rating scale is mapped to ‘AAA(lka)’.
Fitch believes that support from Citibank, N.A. would be forthcoming if required, subject to any regulatory constraints on remitting money into Sri Lanka. The high probability of support is underpinned by CitiSL’s strong operational integration with Citigroup through the use of common systems and regular reporting. The branch’s strategic objectives are also aligned with those of the group.
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