NDB receives 'B+' rating

Fitch Ratings has assigned National Development Bank (NDB) a 'B+' international rating with a stable outlook. Fitch said its long term rating reflected NDBs stand alone risk profits and satisfactory record as a project financier with historically stronger capitalisation, asset quality and profitability compared with other major financial institutions in Sri Lanka.

"However, these strengths are counterbalanced by potential risks from NDB's aggressive loan growth in recent years, and its expansion into other areas of commercial lending, as it seeks to become a full-service universal bank," Fitch said. In funding, Fitch believes that it will take several years before NDB's share of deposits, and particularly low-cost current and savings accounts, become comparable to its well-established domestic peers.