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. |