The State Mortgage and Investment Bank (SMIB) will no longer be rated by the Fitch Ratings which on Thursday downgraded SMIB’s national long-term rating to BBB+(lka) from A-(lka) and simultaneously withdrew the rating.

"The rating outlook is negative," Fitch said adding that it will ``no longer provide rating coverage on SMIB.’’

SMIB’s General Manager, Mr. Weerasinghe, said that they had an issue with Fitch who had given them the same rating ``word for word’’ as the Housing and Development Finance Corporation (HDFC).

``We said that HDFC and we are different and must be rated differently,’’ he said. ``They did not agree. We then said they must not publish our rating but they have done that we are consulting our lawyers on the matter.’’

He also said that the rating which was released last week was done in August.

Asked whether they have moved to RAM, the competing agency, Weerasinghe said said ``we have not done that.’’

SMIB is a 1.78% shareholder of Fitch Ratings Lanka Limited. It will continue to be a shareholder of Fitch Lanka, according to Fitch.

A spokesman for Fitch explained that when the rating agency was set up here on the initiative of the Central Bank and the World Bank affiliated International Finance Corporation, several banks and financial services industry players took up small equity stakes in Fitch Lanka. SMIB was one of these.

He explained that some of their rating customers move out while others come in and the reason for this could improve price as well as other considerations like getting a better rating.