Fitch revises NDB’s outlook to ‘Stable’

Fitch Ratings Lanka said this week it has revised National Development Bank’s (NDB) outlook to ‘Stable’ from ‘Positive’ after a joint statement (together with Commercial Bank) saying plans to merge had been called off.

Subsequent to the proposed merger announcement on 24 January 2007, NDB's rating was revised to Positive to reflect the benefits its creditors stood to gain by the bank being merged with a larger and higher rated entity. The outlook on Commercial Bank was maintained at stable as the proposed merger was not likely to have a significant impact on CB's credit profile. Since the merger has now been called off, NDB's rating has been revised to Stable while CB's ratings are affirmed.