Sunrise Bank set to issue “10% Sunrise Debenture 2080” worth Rs 1 arba; Care Rating assigns CARE-NP A- rating

Care Rating Nepal Limited has assigned ”CARE-NP A-‟ to the proposed Subordinate Bond “10% Sunrise Debenture 2080” issue of Sunrise Bank Limited (SBL).  The bank is set to issue debenture worth Rs 1 arba.

CRNL has also reaffirmed Issuer Rating of “CARE-NP A-“ is assigned to Sunrise Bank Limited. The instrument with this rating are considered to offer adequate degree of safety regarding timely servicing of financial obligations, in Nepal. Such instrument carries low credit risk.

The rating assigned to SBL derives strength from the long track record of operations, experienced promoters and management team, diversified and good geographical coverage through branches, considerable growth in total income and net profit over the last three years, stable profitability parameters and adequate capitalization of the bank.

The ratings also factor in stable growth in loans & advances and deposits; moderate proportion of Current Accounts Savings Account (CASA) ratio; diversified loan portfolio & low advance concentration and comfortable liquidity profile. The rating is constrained by increase on account of moderation in asset quality over the least two years leading to higher write-offs; moderate concentration of deposits; intense competition and exposure to regulatory risk related to industry.

Ability of the bank to continue its growth momentum without compromising on asset quality and maintaining capital adequacy and ability to manage the impact of any regulatory changes by Nepal Rastra Bank (NRB) would be the key rating sensitivities.