ICRA Nepal Downgrades Rating of Prabhu Bank, Withdraws Laxmi Sunrise Bank Rating

ICRA Nepal has withdrawn the issuer rating of [ICRANP-IR] BBB, previously assigned to Laxmi Sunrise Bank Limited and placed on 'Watch with Negative Implications,' following a withdrawal request from the bank. The bank's Rs 2 billion subordinated debenture rating, [ICRANP] LBBB, has also been placed on notice for withdrawal.

Issuers and instruments rated at this level are considered to carry a moderate degree of safety for timely servicing of financial obligations, reflecting moderate credit risk.

ICRA Nepal has downgraded Prabhu Bank Limited's issuer rating to [ICRANP-IR] BB from [ICRANP-IR] BB+, and its Rs 1 billion subordinated debenture rating to [ICRANP] LBB from [ICRANP] LBB+, keeping both on 'Watch with Negative Implications.'

Issuers and instruments at this rating level are seen as carrying moderate default risk on timely servicing of financial obligations. ICRA notes the issuer rating reflects only the bank's general creditworthiness and isn't specific to any debt instrument, while the debenture rating isn't a recommendation to buy, sell or hold securities, nor a comment on their price or valuation.