ICRA Nepal gives ‘moderate credit quality’ rating to Citizens Bank; to float subordinated bond of Rs 500 million

Citizens Bank International Limited (CZBIL) is planning to float fresh subordinated bond program of NPR 500 million. According to a statement of ICRA Nepal, ICRA Nepal has assigned has got ICRA Rating of LBBB (pronounced ICRA NP L triple B)  to fresh and existing subordinated bonds of CZBIL, which indicates that  bank has moderate degree of safety .The rated entity carries moderate credit quality. The rating is under watch with negative Implications. “The rating is also constrained by CZBIL’s adequate  franchise leading to good market positioning with 2.6- 2.8% share in Nepalese banking sector credit on mid-Jan-16,adequate capitalization (CRAR of 12.39% on mid-Jan-16).,” reads the statement of the ICRA.