ICRA Nepal gives [ICRANP] LA@1 rating to Himalayan Bank subordinated bond of Rs 500 & 750million.

Himalayan Bank limited (HBL) is planning to float fresh subordinated bond program of NPR 500 and has subordinated bond program of Rs 750 million. ICRA Nepal has assigned has got ICRA Rating of LA@ (pronounced ICRA NP L A @) to fresh and existing subordinated bonds of HBL, which indicates that  bank has adequate degree of safety regarding timely servicing of financial obligations assigned by ICRA Nepal. The rated entity carries low credit risk. The rating is under watch with negative Implications. The rating is also constrained by HBL’s adequate  franchise leading to good market positioning with 4.09% share in Nepalese banking sector credit on mid-June-15,adequate capitalization (CRAR of 11.45% on mid-Jul-15) vs. 10% regulatory minimum requirements.,” reads the statement of the ICRA Nepal.