Moody's incorporates a high level of government support in the ratings of HNB and Sampath, based on their significant market shares of system loans and deposits. Nevertheless, given that the adjusted BCAs of these banks are already at the same level as the sovereign rating, their long-term local currency deposit and foreign currency issuer ratings do not benefit from any uplift due to government support. The B3 long-term foreign currency deposit ratings of the banks are constrained by Sri Lanka's foreign currency deposit ceiling. WHAT COULD MOVE THE RATING UP An upgrade of the banks' long-term ratings is unlikely, because the ratings are already at the same level as the sovereign rating, and the sovereign rating outlook is stable. WHAT COULD MOVE THE RATING DOWN A downgrade of the sovereign rating would result in a downgrade of the banks' long-term ratings. Moody's could also downgrade the banks' BCAs if there is a material deterioration in solvency factors, such as asset quality or capital.