Fitch lowers Sanasa Development Bank to stable

Fitch Ratings said it revised Sanasa Development Bank's outlook to stable from positive and affirmed the bank's national long-term rating at BB+(lka).

The outlook revision reflects an unexpected deterioration in its credit profile, Fitch said.

The bank failed to sustain the improvement in its capitalization and maintain its asset quality relative to its higher-rated peers, the agency said.

The ratings continue to reflect the bank's weak financial profile, which is characterized by moderate capitalization and high costs, which constrain its profitability, Fitch said.

The ratings also consider its high net interest margins due to its focus on the higher-risk microfinance business, which the bank manages reasonably well, the agency said.

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