ICRA Lanka Ltd. has completed the Rating Review for 2018 for the Regional Development Bank, reaffirming the issuer rating at ‘A’ while revising the outlook to negative from stable.
Further, the rating company has also reaffirmed the issuer rating of ‘A-‘ on the Rs. 2.5 billion listed subordinated secured redeemable debenture program and the Rs. 2 billion subordinated unsecured redeemable debenture program of the bank whilst revising the outlook of the two ratings to negative from stable.
RDB Chief Financial Officer P.S. Edirisuriya said the bank had been experiencing some portfolio quality issues from the beginning of 2018 mainly due to environmental conditions. This situation has been considered by ICRA Lanka Ltd. as significant and reaffirmed the issuer rating of ‘A’ on the Rs. 2.5 billion listed subordinated unsecured redeemable debenture program while revising the outlook of the rating to negative from stable.
“We trust that the situation would be back to normal towards the end of the year and expect to make an application for a fresh rating review,” Edirisuriya said.