observer
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

NDB receive AA rating

Fitch Ratings Lanka Limited (FRL) affirmed the AA(lka) National Rating assigned for implied long-term unsecured senior debt of National Development Bank Limited (NDB), following the merger with NDB Housing Bank Limited ("NDBH"). The outlook on the rating is stable. "AA" national ratings denote a very strong credit risk relative to other issuers or issues in the same country.

The credit risk inherent in these financial commitments differs only slightly from the country's highest rated issuers or issues. The rating takes into consideration NDB's strong financial profile, conservative and prudent policies, good asset quality, above-average risk management and sound capital position.

This is result of the September 4 2006 announcement that NDB has completed its acquisition of 100% ownership of its partly owned subsidiary NDB Housing Bank Limited (rated AA-(lka), which was merged with NDB on September 1, 2006, with the approval of the Central Bank of Sri Lanka. As such, the assets and liabilities of NDBH will be assumed by NDB after which NDBH would be wound up.

NDBH as a licensed specialized bank was obliged to increase its share capital and reserves to Rs 1.5 Bn by December 31, 2007 under new Central Bank rules on minimum capital requirements. NDB acquired all the shares held by the minority shareholders of NDBH by April 2006, and subsequently merged the two banks with the approval of the Monetary Board. This merger enabled the housing business to use the strong capital base of NDB, rather than raise additional funds from its shareholders.

The merger further strengthens NDB Bank's position as a full service commercial bank, by enabling it to offer housing finance through its growing branch network to the entire customer base of the NDB Group.

 

EMAIL |   PRINTABLE VIEW | FEEDBACK

Gamin Gamata - Presidential Community & Welfare Service
www.srilankaapartments.com
www.srilankans.com
www.peaceinsrilanka.org
www.army.lk
www.news.lk
www.defence.lk
www.helpheroes.lk/
 

| News | Editorial | Money | Features | Political | Security | PowWow | Zing | Sports | World | Oomph | Junior | Letters | Obituaries |

 
 

Produced by Lake House Copyright � 2006 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor