Lanka Rating Agency
31-Dec-24
Analyst
Gayani Randima Ariyawansa
gayani@lra.com.lk
+94 114 500099
www.lra.com.lk
Applicable Criteria
- Methodology | Debt Instrument Rating | Aug-24
Related Research
- Sector Study | Commercial Bank | Dec-24
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Lanka Rating withdraws Debt Instrument Rating of National Savings Bank – Senior Redeemable Debentures | LKR 6.323 bn
| Rating Type | Debt Instrument | |
|
Current (31-Dec-24) |
Previous (05-Jan-24) |
|
| Action | Withdraw | Maintain |
| Long Term | - | AA+ |
| Outlook | Stable | |
| Rating Watch | - | - |
With the maturity of the debt instrument, Lanka Rating withdraws the rating of National Savings Bank – Senior Redeemable Debentures LKR~6.323bn with immediate effect.
.
About
the Entity
National Savings Bank (NSB or the Bank) was incorporated as a Licensed Specialized Bank in 1972 by the Parliament Act, No.30 of 1971 and was granted the status of Licensed Specialized Bank (LSB) according to the Banking Act No. 30 of 1988. It is regulated by the Central Bank of Sri Lanka. The overall control of the Bank vests in the seven-member Board of Directors as per the National Savings Bank Act, No.30 of 1971 and the present Board consists of five members. The Chairman of the Board is Dr. Harsha Cabral PC since May 2023.
About
the Instrument
The rating of the debentures highlights its senior unsecured structure. The seniority of the claims warrants that in case of winding up the instrument ranks above the subordinated debt, ordinary voting and non-voting shareholders, and preference shareholders of the Company but the depositors will have a first right which has a government guarantee. However, there is no such guarantee on debt instrument holders, hence, it is rated one notch below the entity rating.