ICRA Nepal Downgrades Laxmi Sunrise Bank's Ratings Due to Adverse Effects
Wed, Jun 19, 2024 7:11 AM on Latest, Corporate, Credit Rating,
In a recent development, ICRA Nepal Limited has downgraded the ratings of Laxmi Sunrise Bank Limited, citing ongoing adverse effects. The bank's subordinated debenture amounting to NPR 2,000 million has been affected by these changes.
Previously rated [ICRANP-IR] BBB+@ for issuer rating and [ICRANP] LBBB+@ for the subordinated debenture, Laxmi Sunrise Bank now holds [ICRANP-IR] BBB@* and [ICRANP] LBBB@ ratings, reflecting a downgrade in creditworthiness.
According to ICRA Nepal Limited, entities with [ICRANP-IR] BBB-rated issuer ratings and [ICRANP] LBBB-rated instruments are considered moderately secure in terms of timely financial obligations. However, the recent downgrade indicates increased credit risk for Laxmi Sunrise Bank.
This decision underscores ICRA Nepal's commitment to transparency and adherence to rigorous monitoring standards in the financial sector. It emphasizes that the rating changes are a reflection of Laxmi Sunrise Bank's current financial health and its ability to meet financial commitments.
Investors and stakeholders are advised to consider these revised ratings while evaluating their positions in Laxmi Sunrise Bank's securities, as this is not a recommendation to buy, sell, or hold any specific financial products.