S&P cuts National Savings Bank, People's Leasing

S&P said it lowered its long-term issuer credit rating on National Savings Bank (NSB) and People's Leasing & Finance plc (PLC) to B from B+.

At the same time, S&P said it affirmed the long-term issuer credit rating on DFCC Bank at B.

The outlooks on the long-term ratings are stable. In addition, S&P affirmed the B short-term issuer credit rating on all the three entities.

S&P also lowered the issue rating on NSB to B from B+; PLC has no outstanding debt securities.

“We lowered the long-term issuer credit rating on NSB and PLC to reflect S&P Global Ratings' view that the Sri Lankan banking sector is facing escalated stress following political turmoil, slowdown in pace of reforms, and slower economic growth than we expected,” S&P said in a news release.

“We affirmed the ratings on DFCC despite the higher risk from the operating environment because the bank's capital assessment already captures these risks at the current rating level.”

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