S&P rates National Development Bank B+

Standard & Poor's said it assigned a B+ long-term and B short-term counterparty credit ratings to National Development Bank plc.

The outlook is stable.

The ratings reflect the bank's satisfactory business and revenue diversification and adequate risk management practices, said Amit Pandey, an S&P analyst.

The ratings also reflect the bank's funding and liquidity position, which is weaker than other large banking peers, Pandey said.

There is a moderate likelihood that the Sri Lankan government would provide timely and sufficient extraordinary support to the bank in the event of financial distress, the agency said. The bank's stand-alone credit profile is at the same level as the sovereign rating on Sri Lanka and therefore the bank does not get any uplift over the stand-alone rating, S&P said.

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