State Support

Sept 12, 2011 (LBO) – Fitch Ratings Lanka has confirmed National Savings Bank’s (NSB) National Long-Term rating at ‘AAA(lka)’ with a stable outlook. “NSB’s rating reflects its full state ownership and importance to the government in terms of its stipulated policy role of mobilising retail savings and investing in government securities (GS),” a statement said.

The bank is bound by the Act to invest a minimum of 60 percent of its deposits in government issued and guaranteed securities.

“NSB’s deposits have an explicit guarantee from the Government of Sri Lanka. Its policy role and full state ownership further underpin the rating by way of potential government support in case of need,” Fitch said.

However it added a substantial change in NSB’s policy role indicating its reduced significance to the government could put downward pressure on NSB’s rating.

The full Fitch statement follows:

Fitch Ratings Lanka has affirmed National Savings Bank’s (NSB) National Long-Term rating at ‘AAA(lka)’. The Outlook is Stable.

NSB’s rating reflects its full state ownership and importance to the government in terms of its stipulated pol