Fitch rates NDB’s subordinated debentures final ‘A+(lka)’

2 June 2015 06:39 am - 0     - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings Lanka has assigned National Development Bank PLC’s (NDB; AA-(lka)/Stable) proposed subordinated debentures of up to Rs.10 billion a final national long-term rating of ‘A+(lka)’.  

The final ratings are the same as the expected ratings assigned on May 21, 2015, following the receipt of documents conforming to information already received.

The proposed subordinated debentures, which will have a tenor of five years and carry fixed and zero coupons, will be listed on the Colombo Stock Exchange. NDB expects to use the proceeds to strengthen its Tier 2 capital base and reduce asset and liability maturity mismatches.

The proposed subordinated debentures are rated one notch below NDB’s national long-term rating to reflect the subordination to senior unsecured creditors.
The issuer rating is driven by the bank’s intrinsic financial strength. NDB’s rating captures its long and stable operating history and developing franchise as a commercial bank.

The rating on the proposed debentures will move in tandem with NDB’s national long-term ratings.  

Fitch believes that NDB’s capitalisation and rating would come under pressure if the bank sustains its growth momentum, in the absence of other mitigating factors.  

The consolidation of NDB’s franchise alongside its ability to sustain strong credit metrics could result in an upgrade of NDB’s ratings.  NDB has a 1.79 percent equity stake in Fitch Ratings Lanka Ltd. No shareholder other than Fitch, Inc. is involved in the day-to-day rating operations of, or credit reviews undertaken by, Fitch Ratings Lanka Ltd.


 

  Comments - 0


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Land acquisitions in Hanthana and Knuckles Mountain ranges

Sri Lankans will soon lose their opportunity to boast about the rich biodiver

Wanathawilluwa forest clearance: Whodunit?

Days after the Anawilundawa Ramsar Wetland, situated in Puttalam District, ma

‘I’m scared to see her face’

On August 13, a woman happened to meet a child who was in desperate need of h

Kidneys that whisper death

A flute version of Beethoven’s ‘Für Elise’ was echoing from a distance