RAM Ratings Lanka has assigned respective long- and short-term financial institution ratings of BBB and P3 to Union Bank of Colombo Limited; the long-term rating having a stable outlook.

The ratings are premised on the bank’s healthy capitalization as well as adequate funding and liquidity positions. Moreover, the bank’s statutory liquid asset ratio increase at 36.31% as at end financial year that ended December 2010, well above the regulatory minimum of 20%.

Moving forward, in addition to the successful fund raising activities combining a rights issue and a private placement, the bank headed for its IPO during end February which was oversubscribed by 345 times in total.