Fitch rates Sri Lanka’s NSB’s Senior Notes Final ‘BB-‘

Sep 12, 2014 (LBO) – Sri Lanka’s Fitch Ratings has affirmed “BB” rating for the issue of US dollar dominated notes which is due 2019 of Sri Lanka-based National Savings Bank, the rating agency said in a media statement.

NSB’s ratings are:

Long-Term Foreign Currency IDR: ‘BB-‘; Outlook Stable

Long-Term Local Currency IDR: ‘BB-‘; Outlook Stable

Short-Term Foreign Currency IDR: ‘B’

Support Rating: ‘3’

Support Rating Floor: ‘BB-‘

US dollar senior unsecured notes: ‘BB-‘

National Long-Term Rating: ‘AAA(lka)’; Outlook Stable The notes have a maturity of five years and an annual coupon of 5.15 percent that will be paid on a
semi-annual basis.

NSB intends to use the proceeds for lending to state-owned entities and government-related projects, the statement said.

This follows the receipt of final documents conforming to information previously received.

The final rating is at the same level as the expected rating assigned on second September 2014.

KEY RATING DRIVERS
The notes are rated at the same level as NSB’s Long-Term Foreign-Currency Issuer Default
Rating (IDR) of ‘BB-‘ as they constitute unsecured and unsubordinated obligations of the bank.

RATING SENSITIVITIES

Any change to Sri Lanka’s rating (‘BB-) or to the perception of state support to NSB could result in a change in NSB’s IDRs and hence the rating of the notes.