ICRA Nepal Updates Ratings for Four Banks: Downgrades Excel and Jyoti Bikas, Reaffirms NMB and Shangri-la with Negative Watch

ICRA Nepal Limited has downgraded the issuer rating of Excel Development Bank Limited from [ICRANP-IR] BB- (on watch with negative implications) to [ICRANP-IR] B+ and removed it from the watch list. The rating reflects the bank’s general creditworthiness, not any specific debt instrument. A '+' or '–' sign indicates a relative position within the rating category, with B+ being one notch above B and B- one notch below.

Similarly, ICRA Nepal Limited has reaffirmed the issuer and subordinated debenture ratings of NMB Bank Limited at [ICRANP-IR] A- and [ICRANP] LA-, respectively, with both ratings remaining on ‘Watch with Negative Implications’. These ratings suggest an adequate degree of safety regarding timely financial obligations and low credit risk. The ratings reflect general creditworthiness and are not recommendations to buy, sell, or hold securities. A '+' or '–' indicates a relative position within the rating category.

Also, ICRA Nepal Limited has reaffirmed the issuer rating of Shangri-la Development Bank Limited at [ICRANP-IR] BB, with the rating remaining on ‘Watch with Negative Implications’. This rating indicates a moderate risk of default in meeting financial obligations. The rating reflects general creditworthiness and not any specific debt instrument. The use of '+' or '–' denotes a relative position within the rating category.

And, ICRA Nepal Limited has downgraded Jyoti Bikas Bank Limited’s issuer rating from [ICRANP-IR] BB to [ICRANP-IR] BB- with continuation on ‘Watch with Negative Implications’ and placed it under the ‘Issuer Not Cooperating’ category, with a notice for rating withdrawal. The rating indicates a moderate risk of default in meeting financial obligations and reflects general creditworthiness, not tied to any specific debt instrument.