ICRA Lanka Withdraws Rating of National Savings Bank

Instrument  Current Rated Amount (LKR Mn)Rating Action
Issuer RatingN/A[SL] AAA (Stable); Withdrawn
Senior, Unlisted, Rated Redeemable debenture programme15,000[SL] AAA (Stable); Withdrawn
Senior Unsecured Redeemable Debenture Programme20,000[SL] AAA (Stable); Withdrawn
Subordinated Unsecured Redeemable Debenture Programme6,000[SL] AA+ (Stable); Withdrawn
Basel III Compliant Additional Tier 1 Capital Bond Programme5,000[SL] AA (hyb) (Stable); Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL]AAA (pronounced SL Triple A) with Stable outlook assigned to National Savings Bank (“NSB”/ “the Bank”). ICRA Lanka has also withdrawn the LKR 10,000 Mn (Option to increase upto LKR 15,000 Mn) senior, unlisted, rated, redeemable debenture programme rated [SL]AAA (Pronounced SL Triple A) with Stable outlook, the issue rating of LKR 20,000 Mn senior, unlisted, unsecured, redeemable debenture programme rated [SL]AAA (pronounced SL triple A) with Stable outlook, the issue rating of LKR 6,000 Mn subordinated, unsecured, redeemable debenture programme rated [SL]AA+ (pronounced SL double A plus) with Stable outlook and the issue rating of LKR 5,000 Mn Basel III compliant Additional Tier 1 (AT1) capital bond programme rated [SL] AA (hyb) (pronounced SL double A hybrid) with Stable outlook.

The withdrawal is as a result of termination of rating agreement(s) entered into by NSB with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka.

The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).

About the Bank:

National Savings Bank (NSB) was established in 1972 through the Parliament Act, No.30 of 1971 by amalgamating the Ceylon Savings Bank, the Ceylon Post Office Savings Bank, the savings certificate section of the Post Master General’s Department and the Ceylon War Savings movement. The Bank’s subsidiaries, NSB Fund Management Co. Ltd is the dedicated primary dealer and Sri Lanka Savings Bank is a licensed specialized bank.

Rating history for last three years:

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