Sri Lanka, Feb. 5 -- Sri Lankan DFCC Bank PLC's (DFCC, A(lka)/Stable) divestment of its 50% stake in Acuity Partners (Pvt) Limited (APL) is unlikely to result in a material improvement in its regulatory capital ratios or have any impact on its national rating, says Fitch Ratings. We expect the transaction, valued at LKR6.5 billion, to improve DFCC's capital buffers mostly at the bank level.
We estimate this disposal will improve DFCC's common equity Tier 1 (CET1) ratio by around 100bp at bank level, with a negligible impact at group level. This reflects the reallocation of capital held at APL to the bank. Following the disposal, we expect the capital ratios at the bank level (3Q24: 10.7% - including 1H profit) and group level (3Q24: 11.6% ...