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Steady State

Nov 29, 2010 (LBO) - Sri Lanka's Nations Trust Bank (NTB) 'A (lka)' long term rating has been confirmed with a 'stable' outlook, Fitch Ratings Lanka said.
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Fitch has also confirmed an 'A(lka)' on a 500 million senior debenture and an 'A-(lka)' rating on a billion rupees subordinated debenture.

The banks loans books contain a relatively higher proportion of consumer products and leases, Fitch said.


The continued consolidation of NTB's lending and deposit franchise, risk management processes and controls, together with a sustained healthy capital structure, could result in an upgrade of its ratings, Fitch said.

An unexpected weakening of the banks asset quality or earnings could result in a rating downgrade. Bit this is less likely over the medium-term, the rating agency said.

NTB's loans grew 23 percent in the nine months to September 2010, which was higher than its peers.


Much of the growth was from medium and large-corporates, which increased to 35 percent of loans at end-September 2010 from 24 percent at end-December 2009, reducing the bank's reliance on consumer products and leasing.

The bank's cost of funds is somewhat h

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