Fitch Ratings has today assigned a National Long-term rating of 'A(lka)' to Nations Trust Bank PLC's (NTB) proposed senior debenture issue of up to LKR500m. At the same time, the agency affirmed NTB's outstanding ratings, as follows:

- National Long-term rating at 'A(lka)'

- Outstanding redeemable subordinated debenture issue of LKR1bn: 'A-(lka)' (A minus(lka))

The Outlook is Stable.

The ratings reflect NTB's sustained profitability, good capital position, strong risk management processes and controls, as well as its relatively large concentration towards consumer financing products and leasing which are more susceptible to economic downturn.

A small-mid sized licensed commercial bank, NTB had a total asset base of LKR67.7bn at FYE08, with a network of 50 branches (including leasing and personal banking centres). The bank has generally catered to a higher-income client base and continues to compete with local branches of foreign banks in terms of product offerings and service levels. The John Keells Group (rated 'AAA(lka)'/Stable) and the Central Finance Group (rated 'A+(lka)'/Stable) own 29.90% and 19.99% of NTB's equity respectively, while the remainder is publicly held.

Central Finance Company PLC owns 1.78% of the shares in Fitch Ratings Lanka Limited. No Shareholder, other than Fitch Ratings Limited of the UK, is involved in the day-to-day operations of, or credit rating reviews undertaken by Fitch Ratings Lanka Limited.