Fitch affirms NSB’s National Rating at AA+; withdraws rating

Jan 27, 2020 (LBO) – Fitch Ratings has affirmed and withdrawn Sri Lanka-based National Savings Bank’s (NSB) National Long-Term Rating of ‘AA+(lka)’ with a Negative Outlook.

Fitch has chosen to withdraw the rating for commercial reasons.

KEY RATING DRIVERS

NSB’s National Long-Term Rating reflects Fitch’s expectation of extraordinary state support stemming from its policy mandate of mobilising retail savings and investing them in government securities.

The NSB Act contains an explicit deposit guarantee and Fitch is of the view that authorities would support the bank’s depositors and senior unsecured creditors to maintain confidence and stability in the system.

RATING SENSITIVITIES

Rating sensitivities pertaining to the National Rating are no longer relevant given today’s withdrawal.