ICRA Nepal assigns [ICRANP] IR BBB issuer rating to Laxmi Bank; Laxmi Capital Market receives AMC Quality 3

ICRA Nepal has assigned [ICRANP] IR BBB (pronounced ICRA NP Issuer Rating Triple B) issuer rating to Laxmi Bank Limited (LBL). The bank has been removed from ‘Rating watch with a negative implications’. The rated entity carries higher than average credit risk. The Rating is only an opinion on the general credit worthiness of the rated entity and not specific to any particular debt instrument. Rating of Laxmi Bank Limited was kept on watch with negative implications in April 2015, pending assessment of the impact due to the earthquake on credit and financial profile of LBL. As per the notice published in ICRA Nepal, ‘The reaffirmation of assigned rating factors in the bank’s adequate track record, institutional promoter support from Citizen Investment Trust (CIT), experience senior management, established underwriting practices, control on assets quality and steady growth supported by geographical expansion of businesses.’ Recently the bank has signed to acquire Professional Diyalo Development Bank Limited (PRDBL). Similarly, ICRA Nepal has assigned an “[ICRANP] AMC Quality 3 (AMC3) ” to Laxmi Capital Market Limited, indicating adequate assurance on management quality. As per Icra Nepal, the capital market’s adequate assurance on management quality factors in the ownership and technical support of Laxmi Bank Limited and adequately established organizational structure. ICRA Nepal assigns FMQR on a scale of AMC1 through AMC5, with AMC1 indicating highest insurance on management quality and AMC5 indicating poor assurance on management quality.