Fitch Ratings has actually downgraded the National Insurer Financial Strength (IFS) Ratings of 7 Sri Lankan insurance companies following the current sovereign downgrade and recalibration of the companys Sri Lankan National Rating scale.

The seven insurance providers rankings have actually been kept on Rating Watch Negative (RWN), the rating firm stated on Thursday.The recalibration is to show modifications in the relative creditworthiness among Sri Lankan providers following Fitchs downgrade of Sri Lankas Long-Term Local Currency Issuer Default Rating (IDR) to CC from CCC on 1 December 2022.

Fitch typically does not designate Outlooks or use modifiers to sovereigns with a ranking of CCC+ or below.National ranking scales are a risk ranking of companies in a particular market developed to help local financiers differentiate danger.

Sri Lankas nationwide rating scale is denoted by the unique identifier (lka).

Fitch includes this identifier to show the distinct nature of the Sri Lankan national scale.

National ranking scales are not equivalent with Fitchs global ranking scales or with other countries national score scales.

The National IFS Ratings of the Sri Lankan insurance providers think about their creditworthiness relative to other issuers in the nation.

The recalibration of the Sri Lankan National Rating scale has actually led to downgrades of the National IFS Ratings of the following insurance providers:- Sri Lanka Insurance Corporation Limited to A(lka)/ RWN from AA(lka)/ RWN;- National Insurance Trust Fund Board to A-(lka)/ RWN from A+(lka)/ RWN;- Peoples Insurance PLC to A-(lka)/ RWN from A+(lka)/ RWN;- HNB Assurance PLC to A-(lka)/ RWN from A+(lka)/ RWN;- HNB General Insurance Limited to A-(lka)/ RWN from A+(lka)/ RWN;- Continental Insurance Lanka Limited to A-(lka)/ RWN from A+(lka)/ RWN; and- Construction Guarantee Fund to BB(lka)/ RWN from BBB-(lka)/ RWN.